associate sponsors

Havells
HDFC

Australia's Telstra announces 8,000 job cuts, to make infrastructure unit a separate entity

Australia's Telstra announces 8,000 job cuts, to make infrastructure unit a separate entity

(Reuters) - Australia's biggest telecommunications company Telstra Corp Ltd on Wednesday said it would lay off 8,000 employees, including removing 25 percent of executive and middle management roles, as well as spinning off its infrastructure assets into a standalone unit.

The new unit, to be named, Telstra InfraCo will comprise Telstra’s fixed network infrastructure and data centres along with operations of Telstra's National Broadband Network.

The new Business Unit is expected to control assets with a book value of about A$11 billion (£6.1 billion).

"We are now at a tipping point where we must act more boldly if we are to continue to be the nation’s leading telecommunications company," Chief Executive Andrew Penn said regarding the layoffs.

Telstra said it would increase its productivity programme by a further A$1 billion in order to reduce costs by A$2.5 billion (US$1.84 billion) by fiscal 2022.

Telstra also said it expects fiscal 2019 core earnings between A$8.7 billion and A$9.4 billion, excluding restructuring costs of approximately A$600 million.

Telstra has seen rising competition squeeze its mobile phone margins and fixed-line revenue dwindle, leading to a narrowing of its earnings forecast for the current financial year as of May and a warning that challenging conditions were expected to extend into 2019.

(Reporting by Susan Mathew and Aditya Soni in Bengaluru,)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 20, 2018 05:05 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See