Australia Telecom Giant Telstra To Axe 8,000 Jobs
Mohammad Ali (@ChaudhryMAli88) Published June 20, 2018 | 11:36 AM
Sydney, (UrduPoint / Pakistan Point News - 20th Jun, 2018 ) :Australia's dominant telecommunications company Telstra Wednesday announced plans to axe 8,000 jobs -- a quarter of its workforce -- as part of a drastic new strategy to cope with an increasingly competitive industry.
The decision by the company, one of Australia's largest employers, is part of a shake-up targeting an extra Aus$1 billion (US$750 million) in cost-cutting by 2022, on top of Aus$1.5 billion previously announced.
To create a leaner operation, it will also split its mobile and infrastructure divisions into separate businesses.
"We are creating a new Telstra that is able to continue to lead the market," said chief executive Andrew Penn.
"In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change.
"This means that some roles will no longer be required, some will change and there will also be new ones created.
" The cuts come less than a month after Telstra said its 2017/18 earnings will likely be at the bottom of its guidance range of Aus$10.1 billion to Aus$10.6 billion, blaming increasing competition in mobile and fixed broadband.
That earnings warning sent its shares tumbling to a more-than six-year low of Aus$2.71.
They had partially recovered since, but took another hit on Wednesday, crashing almost seven percent at one point before bouncing slightly to be trading 5.3 percent lower at Aus$2.75 late morning.
CMC Markets chief market analyst Michael McCarthy said the restructure plan may not be enough to please investors, who have watched Telstra's share price almost halve in the past year.
"Some investors think the Telstra patient needs radical surgery, and could view today's measures as band-aids," he said.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 27 April 2024
Today Gold Rate in Pakistan 27 April 2024
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
More Stories From Business
-
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 27 April 2024
19 minutes ago -
Today Gold Rate in Pakistan 27 April 2024
1 hour ago -
Finance minister reviews progress on FBR digitalization
10 hours ago -
US stocks rebound on tech earnings, London hits new record
10 hours ago -
US approves gene therapy treatment for hemophilia
10 hours ago -
KATI president for inclusion of agri sector in tax net
10 hours ago
-
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-level delegation’s v ..
12 hours ago -
Police to take every step for security of business community: IGP
12 hours ago -
WB director, Planning minister discuss reforms in development projects
12 hours ago -
IP rights crucial in achieving SDG : Jam Kamal
13 hours ago -
FBR’s data protection efforts commended by OECD assessment team
13 hours ago -
US stocks rebound on tech earnings, London hits new record
14 hours ago