Telstra is preparing to slash up to 650 positions, with the 209 roles already announced in its AI joint venture with consulting firm Accenture representing only part of the total, according to internal emails obtained by the ABC.
The cuts reportedly affect both Telstra Enterprise, which serves business clients, and Telstra Consumer, the company’s retail division.
Around 442 additional roles may be outsourced to Indian technology firm Infosys as part of a broader strategy to simplify operations and improve efficiency.
As per ABC report, Chief executive Vicki Brady told staff that employees impacted by the changes will have two options: apply for positions with Infosys through an Expression of Interest (EOI), or accept a redundancy package if not selected.
“These proposals are intended to reduce complexity, enhance competitiveness, and support our Connected Future 30 strategy by providing faster and more streamlined customer experiences,” Brady wrote in an internal email cited by the ABC.
The Telstra-Accenture joint venture, launched in January 2021 with a $700 million investment, is one of the largest AI ventures by an Australian company to date. It was established to develop AI capabilities across Telstra and improve business processes, with the goal of providing specialised tools to help teams “work smarter and faster,” Brady said at the time.
A spokesperson for the joint venture confirmed to The Age that roles will be cut “where work is no longer needed” and some responsibilities moved to its India-based hub, which leverages advanced AI expertise to deliver Telstra’s data and AI roadmap more efficiently. They emphasised that no roles are currently being replaced by AI, although the technology will be used to simplify tools and services to provide faster, more intuitive customer experiences.
As per reports, affected employees will be supported with redeployment opportunities at Accenture or Telstra where possible, alongside retrenchment benefits and other support services.
The latest cuts follow previous rounds of redundancies, including 550 roles in July 2025 and broader workforce reductions planned in 2024 that could affect up to 2,800 employees, or about 10 per cent of Telstra’s workforce. The move reflects a wider trend among Australian companies, including KPMG, NAB, and CBA, of cutting positions and offshoring work to countries with lower labour costs.
Telstra reported strong profits in its last full-year results after cutting operating expenses by 6 per cent, and the company is scheduled to release its half-year financial results on Thursday, February 19.
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