SYDNEY, Australia-Telstra, Australia’s largest telecom provider, announced it will cut 10,000 jobs over the next two years including up to 220 senior management positions as part of a restructuring. The reductions are part of a program to reduce expenses by about $398.8 million per year.
“Margin pressures in the traditional businesses are expected to continue as the new businesses mature,” said Ziggy Switkowski, Telstra chief executive officer. “Major cost reductions will be necessary during this period of transition if Telstra is to achieve similar earnings growth as in recent years.”
Despite little growth in the company’s wireline businesses, net profits were $736.3 million for the six months ending Dec. 31, 1999.
Mobile revenue for Telstra, which operates the country’s largest wireless network, was more than 15 percent of the company’s total revenues and increased more than 17 percent in 1999. The company is in the process of converting all its analog customers to Code Division Multiple Access networks.
The carrier has experienced numerous customer complaints due to poor reception following the close of about 80 percent of the carrier’s analog network Dec. 31. The Australian Communications Authority is monitoring Telstra’s CDMA rollout.
