Telstra to cut 8,000 jobs as part of plan to save costs

Stock images of Telstra signage in Sydney, Thursday, Feb. 16, 2017. Telstra has posted an unexpected 11.8 per cent fall in first-half profit. (AAP Image/Dean Lewins) NO ARCHIVING

Telstra is set to slash 8,000 jobs across Australia as part of a radical plan to cut costs and improve customer service.

The Aussie telco announced on Wednesday that there would be a reduction of 8,000 employees and contractors in the next three years.

Telstra said those positions would come from within management, with one-in-four executive and middle management roles set to go.

CEO Andy Penn said the new strategy was to simplify its product structure to improve services for customers.

“It’s about reducing the number of plans we have from 1800 to 20. If we can deliver that, and make this sort of change and improve the simplicity and get rid of the charges that drive customers,” Mr Penn said in a statement.

“When I look at a lot of the activity in the business, it’s dealing with issues and complications and problems that we’ve created for customers because of the complexity in the design of the product.”

Mr Penn said the new strategy aims to improve productivity by an extra $1 billion to $2.5 billion in the next three years.

Part of this plan will involve switching customers from 1,800 consumer and small business plans to just 20 plans.

Telstra also aims to reduce the number of customer service calls and split off fixed-line assets into a separate company called IntraCo.

Image Credit: Dean Lewins, AAP.