Telstra is yet to decide whether to push for job cuts after the union alleged that the telco will terminate 900 of its workers.

On Tuesday, employees were told by the Telstra management on plans to pursue terminations of employment on its operations division over the next financial year.

It is believed that an estimate of 900 jobs may be slashed off. The Communications Electrical and Plumbing Union predicts that one in 16 workers may be removed from providing service to Telstra customers.

"They've (Telstra) decided on budget cuts and in order to try and fit the problems they've got into the budget cuts, they're having a review of operations," CEPU divisional president Len Cooper disclosed to the Australian Associated Press (AAP).

Cooper explained that there is a need to cut off 900 staff to fit the budget for next year. There's also a possibility that Telstra staff will be provided redundancies under the plan.

However, a Telstra representative confirmed that a final decision has yet to be made.

"We're in the very early stages of annual business planning for the Telstra operations team and these are just proposals that we are talking to our employees about," he told AAP. He did not specify whether a change for next year would include a potential job decrease.

Telstra also cleared that customer service would not be compromised despite a change in management strategy or job reductions next year.

"The fact is we're improving our network and our way of doing things and there's less work required to design, build and maintain our networks. Unfortunately, there's never a good time for job reductions but new technologies and new ways of working mean that we can serve our customers with fewer jobs."

Still, the CEPU insists that the new policies linking to staff cuts are already taking place since it deteriorated its customer service standards.

Last year's data from the Telecommunications Industry Ombudsman reported a 54 per cent overall increase in complaints in October. Telstra topped the list with 58, 597 complaints between July and December 2009.