THE terminal decline of Telstra’s once-dominant fixed telephony business and the rise of new business opportunities have forced the telco giant into a major operational restructure that will affect half the company’s 30,000-strong domestic workforce.
The restructure, which was announced yesterday in an internal memo from Telstra chief operations officer Brendon Riley, is likely to see hundreds of jobs cut from the telco as it transitions its operations and IT divisions from infrastructure-based businesses to more of a software and services future.
“Our traditional businesses are coming under increasing margin pressure and the largest portion of our budget is spent supporting them,” Mr Riley wrote in an internal memo to staff.
“This is not a sustainable business model and we have an obligation to redefine our contributions to Telstra.”
Chosen excerpts by Job Market Monitor
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Ericsson (NASDAQ:ERIC) informs its employees in Sweden about the plan to reduce its operations in Sweden that involves a reduction of an estimated 1,550 positions, covering all job areas, including sales, general and administration, research and development, supply and service delivery. “It is naturally a difficult message for our employees in Sweden,” says Tomas Qvist, …Continue reading »
French telecom equipment maker Alcatel-Lucent (ALUA.PA) plans to axe 5,490 jobs worldwide as part of a cost-cutting plan announced in July, with 3,300 in Europe and 1,490 in France, a French union said on Thursday. “We are in shock,” said Isabelle Guillemot, of the CFDT union. Alcatel had said in July that it planned global … Continue reading »