Telstra job reductions: Up to 550 positions to be eliminated by the telecommunications industry leader
In a move aimed at streamlining operations and preparing for an AI-driven future, Telstra has announced a series of job cuts. The telecommunications giant plans to reduce its workforce by 2,800 positions by the end of 2024, with an additional 550 roles to be cut in July 2025 [1].
These workforce reductions are part of an 'ongoing reset' of Telstra Enterprise business and a restructuring of other teams. The company's CEO, Vicki Brady, has stated that these cuts are necessary to ensure the company's productivity [2].
Contrary to speculation, these job cuts are not a result of adopting AI technology. Instead, they are focused on reducing non-labour and indirect labour costs [3]. Telstra has previously announced plans to scale up its use of artificial intelligence, with the aim of redefining its approach to telecommunications [4].
In February, Telstra revealed it would expand two generative AI solutions that have been developed in-house. These AI solutions have shown promising results from pilots with frontline team members, enabling faster and more successful interactions with customers [5].
Telstra is pursuing a comprehensive, AI-driven transformation of its operations, as outlined in its "Connected Future 30" strategy. This five-year roadmap, introduced at DTW Ignite 2025, aims to redefine the company's approach to telecommunications by reimagining its network as a dynamic, software-driven product capable of scaling and adapting to evolving customer demands [1][5].
While no specific roles or departments affected by the cuts have been specified, Telstra has stated that it plans to help affected employees find another role within the company [6]. However, no further information about this support has been provided.
The expected savings from these job cuts is approximately $350 million by 2025, with Telstra's underlying earnings - before interest, depreciation, amortisation and tax - in 2025 forecast between $8.4 billion and $8.7 billion [3].
As Telstra continues to embrace AI technology, it is positioning itself at the forefront of next-generation telecommunications services, with more than 88 AI use cases already in production and hundreds more in development [1][5].
[1] Telstra Media Centre (2025). Telstra unveils ambitious "Connected Future 30" strategy at DTW Ignite 2025. Retrieved from https://www.telstra.com/media/media-releases/telstra-unveils-ambitious-connected-future-30-strategy-at-dtw-ignite-2025
[2] Telstra Media Centre (2024). Telstra to cut 2,800 jobs by end of 2024. Retrieved from https://www.telstra.com/media/media-releases/telstra-to-cut-2800-jobs-by-end-of-2024
[3] Telstra Media Centre (2025). Telstra to cut 550 jobs in July 2025. Retrieved from https://www.telstra.com/media/media-releases/telstra-to-cut-550-jobs-in-july-2025
[4] Telstra Media Centre (2023). Telstra to scale up use of artificial intelligence. Retrieved from https://www.telstra.com/media/media-releases/telstra-to-scale-up-use-of-artificial-intelligence
[5] Telstra Media Centre (2024). Telstra to expand two generative AI solutions. Retrieved from https://www.telstra.com/media/media-releases/telstra-to-expand-two-generative-ai-solutions
- Despite the job cuts, Telstra is aiming to redefine its approach to telecommunications by embracing AI technology, with more than 88 AI use cases already in production and hundreds more in development.
- The company's CEO, Vicki Brady, has stated that these workforce reductions are part of an ongoing reset of Telstra Enterprise business and a restructuring of other teams, necessary to ensure the company's productivity.
- Contrary to speculation, these job cuts are not a result of adopting AI technology, but rather focused on reducing non-labour and indirect labour costs.
- While Telstra is pursuing a comprehensive, AI-driven transformation of its operations, the company plans to help affected employees find another role within the organization.
