Health and Beauty

Nc Natural Hair Care Expo

Telstra slashes customer product offering; cuts 8000 staff

To support this, Telstra has outlined a $600m restructuring provision to support the changes needed to be made, on top of its $50m transition program. In addition, the company expects the increase of its productivity program will rise by $1 billion to $2.5 billion cost out by FY2022.

Penn claimed the strategy will fundamentally change the nature of telecommunications products and services in Australia.

“As an industry, we’re at a tipping point; the nature of telecommunications is unsustainable, and it has to change. Telstra is going to lead that change,” Penn said, noting the rate and pace of change is increasingly being driven by technological innovation and competition and companies must respond and adapt accordingly.

Radically cutting the product offerings and restructuring is about dealing with all the complications, frustrations and complexity that exists in telecommunications today, Penn continued. He pointed out there are $500m in charges and costs for customers being given away in terms of service revenue under the changes.