Telstra's (ASX: TLS.AX) CEO David Thodey wants to tighten up his operations and to achieve that goal he's going to cut about 10 percent of senior and middle management positions in the service provider's business.
According to a Telstra spokesman that was interviewed by The Wall Street Journal, the workforce reduction is an effort to simplify the telco's operations and reducing duplication. In total, Telstra will lay off about 30 senior managers and 270 middle managers.
"These changes are about making our business simpler, removing duplication and increasing the speed of decision-making. All of the changes are intended to make processes simpler for our front-line staff, enabling them to make things happen faster and serve customers better," said the spokesperson.
Although Telstra has informed senior managers of its job reduction plans, the service provider will reveal what middle management roles will be cut in the next few weeks.
Not surprisingly, the job cuts come at a time when Telstra has had to battle aggressive wireless operators such as Singapore Telecom's Australian division Optus, not to mention declining wireline revenue.
- Wall Street Journal via Dow Jones has this article (sub. req.)
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