blog If I had a dollar for every article I’ve written over the years about Telstra cutting jobs in its workforce and restructuring, I would probably have … something like $100. So I wouldn’t be rich. But I would feel more satisfied about having to write the same article every three to six months for much of the past decade ;) News of the latest cuts comes in the Herald Sun this morning (we recommend you click here for the full article):
“The majority of the cuts, to be announced within weeks, are expected to come from the waning fixed-line business … In an internal memo, Telstra chief operations officer Brendon Riley told staff yesterday that the business model for the operations division was not sustainable.”
We’re not surprised by this at all. Telstra tends to go through at least one to two major or minor restructuring rounds per year, and the cuts that the telco has announced internally appear to help align Telstra’s costs to the more profitable and growing areas of its business (say, for example, mobile, cloud computing and network applications and services), while taking resources away from areas where its losses are accelerating (the traditional fixed line network). From a top-line business perspective, it all makes complete sense, although we’re sure quite a few rusted-on Telstra staff will be annoyed to lose their jobs. At least NBN Co is probably still hiring. I guess we’ll find out eventually whether Telstra’s cuts to its fixed-line network support will affect the long-term quality of its copper network.
Image credit: Telstra