Telstra cuts jobs and cancels vendor contracts

Telstra is considering cutting 651 jobs while failing to renew a number of key vendor support and maintenance contracts.

The Australian telecommunications company says it will close two customer service contact centres and revamp service delivery testing functions resulting in 422 Telstra employees and 229 agency workers being made redundant.

Three months after Optus announced it would cut 750 senior and middle management jobs as part of its own major business restructure, Telstra has proposed the closure of two contact centres in Lismore and part of the Townsville site.

The move will also see job losses across Melbourne and Sydney as the firm says all staff affected by the new proposals will be invited to apply for roles in other parts of Telstra.

“We operate in a fast moving, highly competitive market. To keep pace with this changing environment and remain competitive, like every business we’re constantly reviewing the way we work to identify opportunities to improve customer service and simplify our business,” Telstra says.

“In fact 30% of our customers now use online transactions.

“As a result, we believe we need fewer contact centres in the future.

“We’re also a changing business, with some parts of the business shrinking and other areas growing due to changing technologies and customer trends.

“As we have seen in recent times, this has meant adding staff in growth areas while reducing staff in others, and this evolution will continue.”

Contract cancellations

The will also not renew a number of key vendor support and maintenance contracts for the running of its mobile network with those impacted citing budgetary restraints as the key reason behind the non-renewal.

“We continually review our service and maintenance contracts to ensure we have the most appropriate arrangements and suppliers for our needs,” Telstra says.