Australia’s Telstra to cut 650 jobs in AI, outsourcing shift to India
NEW SOUTH WALES, AUSTRALIA — Australia’s telecommunications company, Telstra, will cut 650 jobs and outsource hundreds of roles to India, marking its second round of layoffs in less than a year as it restructures operations and seeks to streamline services for commercial customers.
According to a report from News.com.au, the planned reductions come just eight months after the company eliminated 550 roles.
In an internal announcement to staff on February 10, Telstra chief executive Vicki Brady said 209 jobs from the company’s AU$700 million (US$495 million) joint artificial intelligence (AI) venture with Accenture are set to be cut. The joint venture began in early 2025.
In addition, 442 roles will be eliminated and the work outsourced to Indian IT services provider Infosys.
Brady told the staff that workers whose positions are affected by outsourcing will be able to submit an expression of interest to join Infosys or opt for redundancy.
Job cuts target AI venture, commercial operations
The 209 roles impacted within the AI joint venture underscore a shift in Telstra’s digital strategy, even as the company continues to invest in technology partnerships. The broader cuts reflect what the company describes as inefficiencies in its systems and commercial processes.
A Telstra spokesman said aspects of the company’s systems for managing commercial customers.
“Continues to slow us down and makes it harder to deliver the reliability and simplicity our customers expect,” a Telstra spokesman said, highlighting the aspects of Telstra’s system and processes for dealing with commercial customers .
“We’ve proposed changes to streamline duplicated work, clarify accountability and strengthen our ability to deliver better experiences for both our frontline teams and our customers,” the spokesman said.
Outsourcing to Infosys expands Telstra’s global footprint
The outsourcing of 442 roles to Infosys is a signal to establish better offshore operations through its partnership with the Indian company. The company confirmed that it would investigate different options to transfer employees who will be affected by the changes.
“If the proposals go ahead, both Telstra and the JV are committed to exploring redeployment opportunities for those people impacted,” the spokesman said.
“Our Telstra team will be able to apply for open roles at Telstra, and the JV team will be able to apply for open roles at Telstra or Accenture,” the spokesman added.
The spokesman further explained that if redeployment opportunities cannot be secured and employees ultimately leave Telstra or the joint venture, they will be provided with comprehensive redundancy benefits.
The Company’s spokesman further stated that the affected individuals will also have access to a range of support services that would assist them in their transition period, such as information and resources needed to help them move into new roles outside the company.
The move reflects a broader trend in the global telecommunications and technology sectors which companies demonstrate by managing their workforce through staff cuts while implementing automation, making AI investments and dealing with financial constraints.
Telstra’s choice demonstrates that companies will continue to depend on outsourcing established Indian technology companies as this practice has become essential for their business transformation efforts.
The outsourcing industry continues to evolve as international talent acquisition methods from different countries serve as an essential element of its development.
