Telstra shreds 10k jobs

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Telstra chief executive Andy Penn said a sharemarket float of struggling pay-TV platform Foxtel remains on the table, while confirming he will slash tens of thousands of contractor jobs at the telecommunications company.

The telco has cut 5000 positions from its indirect workforce over the past 12 months and expects to cut another 25 per cent from its ranks, which would be about 10,000 people, over the next two years.

This is on top of about 6000 direct jobs that will be cut by the end of this financial year after an acceleration of 8000 redundancies in total that was revealed by Mr Penn a year ago as part of a radical turnaround strategy for the next few years known as “T22”.

Unemployment is set to rise and wages growth fall in the second half.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.