Telstra, Australia's largest telco, informed its staff on Wednesday that it is poised to eliminate nearly 500 jobs, signifying the first significant round of redundancies under Chief Executive Vicki Brady's leadership.

As part of its ongoing T25 strategy, the proposed 472 job cuts are aimed at continuing the company's cost reduction efforts, reported The Sydney Morning Herald, an Australian tabloid. This move comes just under a year after Brady assumed the role of Chief Executive and Managing Director.

“I can confirm we have proposed some changes to continue to reshape our business so that we remain competitive, efficient as well as effective in the way we work. These are critical for us to remain competitive and achieve our customer ambitions,” a spokesperson for Telstra confirmed to this masthead.

Telstra did not provide a specific number for the overall reduction in roles, but stated that there was a proposed net loss of 472 jobs, while also planning to create some new roles. This figure represents approximately 1.5 per cent of Telstra's national workforce, which consists of 30,000 employees. 

The company clarified that its consumer teams, responsible for serving customers in-store, on the phone, or at home, will not face reductions. The majority of the proposed cuts are anticipated to come from the telco's enterprise business.

“Decisions like this are always difficult. We know and feel the personal impact on our people and their families,” the spokesperson added. In 2021, Telstra introduced its target of achieving up to $500 million in cost savings over three years, which was part of the telco's T25 strategy outlined by former CEO Andy Penn.

As per the same report, a source close to the matter, who was not authorized to speak publicly, mentioned that those who end up leaving Telstra will have access to its redundancy package and a range of support services.

Earlier this year, NBN revealed its plans to reduce 500 jobs, which is approximately 10 per cent of its workforce, by the end of the 2023 financial year. This move is aimed at cost reduction, as the company faces increasing competition from more affordable alternatives, including Elon Musk's Starlink.