Telstra is slashing 8,000 jobs and splitting its mobile and infrastructure operations into separate businesses as it aims to cut an additional $1 billion of costs by 2022.
The "Telstra2022" strategy stems from the telco's strategic investments announced in 2016, and will be made up of four pillars involving establishing a standalone infrastructure business; simplify its structure; a cost reduction program and portfolio management; as well as simplifying its product offerings, eliminating customer pain points and creating all digital experiences.
Telstra has announced plans to slash 8,000 jobs, including one in four executive and middle management roles, in a major cost-cutting overhaul.
'In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change, ' Telstra chief executive Andrew Penn said in the statement.
"The $50 million transition fund is supporting in relation to enhanced outplacement services, post-employment support, training, coaching, those sorts of things as well", he said.
"When I look at a lot of the activity in the business, it's dealing with issues and complications and problems that we've created for customers because of the complexity in the design of the product".
With its rivals, including late-comer TPG, scrambling to attract its customers as the NBN undermines the dominance that Telstra's legacy fixed line networks once gave it, Telstra's market share, revenues and premium pricing are under threat.
Mr Penn said the current range of 1,800 plans on offer to business and personal customers would be slashed to 20 to help remove frustration many felt about issues including excess data costs.
As a outcome of Telstra2022, up to 8,000 employee and contractor roles will be impacted.
'This means that some roles will no longer be acquired, some will change and there will also be new ones created'.
"The rate and pace of change in our industry is increasingly driven by technological innovation and competition. we have worked hard preparing Telstra for this market dynamic while ensuring we did not act precipitously".
The structural aspect of the strategy involves the creation of a new unit housing all Telstra's infrastructure other than that which supports in mobile network.
"In this environment traditional companies that do not respond are most at risk". The new strategy has been given the moniker Telstra2022.