Telstra is bracing for impactful changes as it plans to lay off hundreds of workers in its quest for enhanced AI efficiency. Reports from the Sydney Morning Herald indicate that job cuts will be widespread across the organization. This move aligns with Telstra’s ongoing cost-reduction strategy, pressured by rising inflation and energy expenses.
Previously, Telstra eliminated 2,800 positions to save A$350 million due to similar financial constraints. The company is increasingly relying on AI to boost operational efficiencies. Earlier this year, Telstra announced its ‘Connected Future 30’ initiative, aiming for substantial AI integration by decade’s end. According to CEO Vicki Brady, “We will embrace AI, as every business will need to, and we expect the pace of change over the next five years to be extraordinary.”
Brady acknowledges the workforce’s future will differ significantly, stating it will be smaller but more efficient by 2030. While shrinking its workforce, Telstra remains committed to AI’s long-term potential. Earlier this year the company formed a joint venture with Accenture, with plans to invest A$100 million annually for seven years. This partnership seeks to modernize data and AI platforms.
One significant goal is to consolidate Telstra’s AI vendor partners. The company plans to reduce its data and AI suppliers from 18 entities to two major partnerships: the Accenture joint venture and another with Quantium, an Australian AI firm. This strategic move underscores Telstra’s commitment to streamlined and efficient AI operations.
