Australian telco Telstra will be laying off almost 1, 000 of its employees, as it pursues a simpler business model.

Telstra's move "to shift decision-making from head office to local managers" will results to an overall reduction of 950 jobs. These job losses will affect middle-management and executive roles in capital city offices.

Telstra CEO David Thodey said, "Change is always difficult, even where it is made in a way which is focused on improving service to our customers."

Those affected by Telstra's workforce reduction will be given access to assistance programs and, redundancy entitlements of up to 80 weeks pay, depending on their length of service.

In spite of the workforce reduction, Mr. Thodey said Telstra will improve customer service because it is simplifying the way decisions were made, reducing process errors that require manual intervention, and introducing online-self service options for customers.

The workforce reduction is part of changes that Telstra announced today. In a press release, Telstra said the changes would empower local managers, create a new Innovation Office, simplify sales and marketing channels, and reform key internal processes.

Thodey said, "Telstra will now be organised as a sales and marketing company that is faster to market and more focused on our customers."

"Telstra's simpler new operating model will shift decision-making from head office to local managers and allow our frontline employees to get results more quickly, with fewer steps and approvals."

These changes are enumerated briefly as follows:

  • A single, local consumer business that will combine Telstra Country Wide and the retail shop network, creating a strong and integrated local consumer model across regional and metropolitan areas.
  • A new Innovation Office that will elevate the importance of long-term innovation and link product development with customer needs.
  • A simpler product management structure that will eliminate duplication between customer-facing business units and Telstra's Chief Marketing Office.
  • Simpler business planning and reporting processes that will streamline company strategy, planning and internal reporting.

The changes are part of a company-wide program to simplify company processes, improve customer service and satisfaction and save costs.