Telstra Cuts 209 Jobs, Offshores AI Work to India
Telecommunications leader Telstra is set to cut 209 jobs as part of its joint venture with consulting firm Accenture. This initiative will also involve offshoring certain roles to India, leveraging the nation’s expertise in artificial intelligence.
Details of the Job Cuts
Announced recently, the decision comes as Telstra aims to streamline operations within its $700 million joint venture, which focuses on integrating AI into its business. Over the past two years, Telstra has been dedicated to enhancing its AI capabilities.
Impact on Employees
According to a spokesperson, the reduction in roles is a response to a decrease in the necessity for specific positions. The joint venture seeks to enhance efficiency and deliver a superior experience for its customers. Some employees will have the chance to transition into new roles with Accenture, particularly those with AI and data skills.
- 209 jobs will be eliminated.
- Some work will be moved to India.
- Redeployment opportunities will be offered for affected employees.
Future of Work at Telstra
The spokesperson clarified that no positions are currently planned to be replaced by AI. Instead, the focus remains on using technology to enhance the services provided to customers. The joint venture was established last January with the intent of developing specialized AI tools to foster efficiency.
Broader Context of Job Cuts in Australia
This latest move by Telstra follows its previous announcement in 2024, which outlined plans to reduce its workforce by up to 2,800 jobs, constituting about 10% of its total employees. Other Australian firms, such as KPMG, NAB, and CBA, have also initiated similar job cuts and offshoring strategies to manage costs.
Financial Performance and Future Reporting
Despite the job cuts, Telstra reported significant profits in its recent full-year results, having managed to cut operating expenses by 6%. The company is set to release its half-yearly results on February 19.
