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Australia’s Telstra will cut up to 2,800 jobs by the end of the year to simplify operations | WTAQ News Talk | 97.5 FM · 1360 AM

(Reuters) – Australian telecoms company Telstra said on Tuesday it would cut up to 2,800 jobs from its direct workforce by the end of this year, as part of proposed measures to simplify operations and improve productivity.

Consultation on 377 of these roles would begin immediately, mainly from areas that support the products and services that will be abandoned in the business operations, Telstra said.

The company expects one-off restructuring costs of A$200 million ($133.36 million) to A$250 million in fiscal 2024 and 2025.

Telstra reiterated its 2024 earnings forecast and said it expects 2025 underlying earnings before interest, taxes, depreciation and amortization to be between A$8.4 billion and $8.7 billion.

Telstra had first announced a review of its products and services under its enterprise business in February.

It said on Tuesday it had identified a number of actions as part of the review, including streamlining its product portfolio and reducing network applications and services products in the market by almost two-thirds.

Telstra said it would also reshape some of its internal operations by moving its Global Business Services function to other parts of the business.

($1 = 1.4997 Australian dollars)

(Reporting by Himanshi Akhand in Bengaluru; Editing by Shailesh Kuber)