.jpg)
Telstra, Australia’s largest telecom company, plans to cut 2,800 jobs, or 9% of its workforce, due to the slowing economy and rising unemployment rates.
Telstra, Australia’s largest telecommunications company, recently announced plans to cut up to 2,800 jobs. This decision, which will affect approximately 9% of its workforce, is part of a broader trend reflecting the slowing Australian economy and rising unemployment rates.
Telstra’s CEO, Vicki Brady, stated that the majority of the job cuts would occur by the end of this year. She acknowledged the uncertainty such changes can create for their employees and promised to support them through this transition with care and transparency.
This announcement comes at a time when Australia’s economy is showing signs of slowing down. The Reserve Bank of Australia (RBA) has noted that the economy has lost momentum, and unemployment rates have risen to 4.1% in April, up from 3.9% in March. These figures indicate a tightening labour market and a slowing economy, trends that are expected to continue into 2024.
The job cuts at Telstra are part of a larger strategic shift by the company. Telstra is embarking on significant cost reductions and other adjustments to reset its troubled Enterprises division. The company anticipates one-off restructuring costs of $200 – $250 million across FY24 and FY25. With all actions outlined, Telstra anticipates achieving $350 million of its T25 cost reduction ambition by the end of FY25.
However, these job cuts have raised concerns about the level of service Telstra can provide to its customers. The Communication Workers Union (CWU) has expressed concerns about maintaining customer service levels after cutting 9% of the workforce.
The slowing Australian economy and rising unemployment rates are not isolated to Telstra. They reflect broader economic trends in the country. The RBA has noted that Australia’s unemployment rate will rise materially in 2024 amid the slowing economy. This economic slowdown is by design, not default, as the RBA raised rates to a restrictive setting to slow economic growth to a below-trend pace.
In conclusion, Telstra’s decision to cut jobs is a reflection of the broader economic trends in Australia. The slowing economy and rising unemployment rates are challenges that businesses and the government will need to address. As Australia navigates these economic headwinds, companies like Telstra will continue to adapt and make difficult decisions to ensure their sustainability.
Global markets remained volatile as rising oil prices, inflation concerns and shifting rate expectations continued to impact investor sentiment. In this update, Tyson Roberts explores the latest developments affecting global markets, the Australian economy and the property sector. The article also highlights how ongoing uncertainty and AI-driven market momentum are shaping investment outlooks moving forward.
The 2026–27 Federal Budget is set to reshape Australia’s property market, with major changes to negative gearing and capital gains tax rules. In this article, Matt Damos explains what these reforms could mean for investors, first home buyers and future property strategies. The changes aim to encourage investment in new housing supply while easing competition for existing homes. Discover how the new rules may affect your plans to buy, invest or sell property in the years ahead.
Market volatility can have a bigger impact in retirement, making a reliable income strategy more important than ever. In this article, Paul Antos explores retirement income options including account-based pensions, annuities and blended strategies. He also explains how the Age Pension can provide added stability during uncertain times. Discover practical ways to help protect your retirement income and maintain confidence through changing markets.
Stay in the know with the latest updates, insights, and exclusive content delivered straight to your inbox.
