Revenue from its enterprise unit dropped 2.3% in the second half of 2023, said Telstra
Australian telco Telstra will axe as many as 2,800 workers as part of the “reset” of its enterprise fixed business, the company’s second-largest division that accounts for 30% of revenue.
In February, however, Telstra revealed that revenue from the unit dropped 2.3% to $1.73 billion in the second half of last year, compared to the first half of 2023. At the time, CEO Vicki Brady said the company is “addressing the cost base of [its] enterprise business,” particularly its network applications and services (NAS) portfolio.
The lays off, then, are part of a larger shift in its approach to enterprise services amid this poor performance. Telstra will also reduce the number of NAS products on the market by nearly two thirds. These cost cutting measures, said the company, measures will help lower its costs by $233 million by the end of the 2025 financial year.
Brady said that due to increasing network demands from its customers, it has become necessary for Telstra to refocus its efforts on mobile infrastructure and services. “This means we have to make significant ongoing investments in our infrastructure, our technology and our services to deliver what our customers need today and into the future,” she said.
The majority of the lay offs, which represent 9% of Telstra’s 31,000 staff, are expected to take place by the end of 2024, while about 400 of these cuts will occur immediately.
