Telstra has shed 1088 full-time jobs over the past six months leaving it with 32,551 full-time equivalent staff members. And it blames the impact of the NBN.
In a statement (now removed from the PressReader site but repeated in other news sources), a Telstra spokesman said the business was rapidly changing, driven by the rollout of the National Broadband Network and our move into other industries and markets”.
“It is important to note that in recent years our job numbers in Australia have been fairly consistent, as we have added people in growth areas and (removed them) in our traditional business areas,” he said.
Some “non-customer facing roles in our retail and global finance services business units” were cut in the past six months, he said, as part of a push to “streamline (and) remove layers and duplication to drive a better customer outcome”.
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A reputable source suggests that the job cuts cost Telstra A$57 million (up 64% on the previous half-year) and there are more to come.
The Melbourne Herald Sun states Telstra declined to say whether external consultants were scrutinising the books in pursuit of further cost-cutting options. “We use consultants from time to time to assist with improving our business practices,” the spokesman said.
Telstra woes continue
The Telco, which has suffered a series of network outages over the past year and a fire at an exchange, has also had an increase in “labour substitution costs” over the past six months. Telstra paid an extra $32 million — an increase of 7.2%” — for “labour outsourcing” over the period.
Telstra shares have also suffered a heavy drop – back to mid-2013 levels. The Motley Fool says share price is hovering almost 15% below its 52-week high of $5.86 in July. It’s been mostly downhill for the shares since then. In a later update, it states, “Telstra used to have a significant advantage over competitors by owning all the copper networks, allowing it to charge rivals for use. However, now that the NBN Co owns the infrastructure, Telstra is on a level playing field with everyone else who are offering cheaper deals.”
Some Telstra staff are unhappy to at the decision to use performance monitoring of field staff and vehicles with GPS and the potential breach of OH&S laws.
Telstra’s staff approval ratings has slipped according to Glassdoor due to the constant restructuring and turnover of management. For those that have been there 5+ years, there are constant examples of Déjà vu and increasing reliance on bureaucracy and process.
Telstra’s half year financial results are here.
iTWire has sought comment from Telstra and is awaiting a reply.