Telstra, Australia’s leading telecommunications company, is set to cut approximately 650 jobs, with some positions to be outsourced to a technology firm in India, according to internal emails shared with ABC News. The announcement, made on Tuesday, follows the telco’s confirmation of 209 job losses from its AI joint venture with Accenture.
The email, sent to staff at 4:49 PM AEDT by CEO Vicki Brady, detailed proposed changes impacting Telstra’s Enterprise and Customer divisions. These divisions are responsible for providing telecommunications services to businesses and retail customers, respectively. Brady emphasized that the changes aim to reduce complexity, enhance competitiveness, and improve operational efficiency.
Strategic Shift to Enhance Competitiveness
The job cuts are part of Telstra’s “Connected Future 30” strategy, a five-year plan to integrate artificial intelligence more deeply into its operations. This strategy had already seen 550 job cuts announced in July 2025. The latest redundancies are in addition to those earlier announcements.
Brady explained that the company plans to reset its service delivery for enterprise customers through a strategic partnership with Infosys, an India-based technology company specializing in IT, business consulting, and outsourcing services. This partnership is expected to result in some roles being transferred to Infosys, while others will be reduced.
Employee Options Amid Redundancies
Employees affected by these changes have been given two options. According to an employee identified as Kate, staff were informed in a group meeting that they could either apply for positions at Infosys or accept redundancy. The process involves submitting an Expression of Interest (EOI), with no guarantee of acceptance, as Telstra and Infosys will jointly assess the applications.
“Option 1: Move to Infosys. We can submit an Expression of Interest (EOI). It is not guaranteed you’ll be accepted. Telstra + Infosys will jointly assess EOIs.
Option 2: Redundancy. If you don’t submit an EOI, or if you submit an EOI but are not selected, we will go into the redundancy process.”
Efforts to Simplify Operations
Brady highlighted the company’s progress over the past five years in simplifying operations and improving customer experience. However, she noted that complexity still poses challenges in certain areas, prompting the need for further streamlining.
As part of these efforts, Telstra and Accenture have established a joint venture (JV) aimed at enhancing business processes. Announced in early 2025, the $700 million JV is expected to result in an additional 209 job cuts, with some roles potentially moving to Accenture’s specialist hub in India.
“We spoke with the Telstra Accenture Data & AI Joint Venture (JV) team today about proposed changes to its workforce, including reducing roles where work is no longer needed, and moving some work to the JV team in India,” a JV spokesperson told ABC News.
Looking Ahead: The Impact of Telstra’s Strategy
The latest round of redundancies underscores Telstra’s commitment to its “Connected Future 30” strategy, which seeks to leverage global capabilities and advanced AI expertise to deliver improved customer experiences. Brady expressed confidence in the proposals, despite acknowledging the challenges they may pose for employees.
Telstra has committed to consulting with staff about the proposed changes and exploring redeployment opportunities for those affected. Employees from both Telstra and the JV will have the opportunity to apply for open roles within Telstra or Accenture. Those unable to find new positions will receive leading retrenchment benefits and support services.
As Telstra navigates this strategic overhaul, the implications for its workforce and operations remain significant. The company’s focus on simplifying processes and enhancing competitiveness will be closely watched by industry observers and stakeholders alike.
