Telecommunications firm Telstra (ASX:TLS) has announced that it will cut down 950 jobs across the country.

According to Telstra's statement, the positions that would be relieved are those belonging to executive and middle management in Australia's capital cities.

Telstra's statement said the managers would be eligible for payouts equivalent to up to 80 weeks' pay.

"Telstra will improve customer service, even with fewer employees, because it is simplifying the way decisions were made, reducing process errors that require manual intervention and introducing online self-service options for customers," Mr David Thodey said in a statement released this morning.

"Change is always difficult, even when it is made in a way which is focused on improving service to our customers," he said.

"The changes we are announcing today will reduce duplication of roles, clarify job accountabilities, eliminate unnecessary steps in company process, and substantially simplify decision making."

The company said this is part of its restructuring to have better operational efficiency.

The company will spend some $440 million to cover these costs related to redundancies.