The telecommunications company announced the outsourcing of hundreds of roles
Telstra is preparing to shed up to 650 roles and outsource hundreds more to India in its latest cost‑cutting drive, after staff were told of proposed redundancies and offshoring plans in an email.
Australia’s largest telco confirmed on Wednesday that about 440 roles could go as part of a shake‑up of its Telstra Enterprise and Telstra Consumer divisions, if it proceeds with a proposal to shift work to Indian technology giant Infosys.
Those cuts come on top of up to 209 positions earmarked for removal from Telstra’s $700 million data and artificial intelligence joint venture with global consultancy Accenture, announced earlier in the week. Some of that work is expected to be moved to a specialist Accenture hub in India.
In a note to staff sent late on Tuesday afternoon, CEO Vicki Brady said the proposals were designed to “reduce complexity, be more competitive and operate more efficiently and sustainably” across the group’s business and retail arms, as it pursues its “Connected Future 30” strategy.
Emails seen by the ABC show Ms Brady warning that the changes would affect roles supporting enterprise and consumer customers, as Telstra continues to overhaul the way it delivers technology and managed services to businesses, government and households.
Under the plan, 442 roles would be cut and their work outsourced to Infosys, while staff whose positions are being offshored would be able to express interest in moving across to the Indian firm or take a redundancy.
A Telstra spokesperson said the proposals were driven by the “complexity of our legacy systems and processes”, which the company argues is slowing down service delivery and undermining efforts to provide “reliability and simplicity” for 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 spokesperson said.
On the AI joint venture side, the company says roles will be reduced “where work is no longer needed”, with some functions shifted to India to tap Accenture’s global AI capabilities and specialist hub. The JV, which began operations in early 2025, was created to modernise Telstra’s data platforms and embed AI across the business.
Telstra and the JV have stressed that no roles are being “replaced by AI” under the current proposals. Instead, executives argue that automation and offshore delivery will help accelerate the company’s data and AI roadmap, while freeing up resources for new, more specialised roles.
The telco has promised consultation with employees over the coming weeks before any decision is finalised, and says affected staff will be able to apply for other jobs inside Telstra, or – in the case of JV employees – within Telstra or Accenture. Those unable to secure redeployment will receive “leading” redundancy packages and career transition support, according to statements provided to multiple outlets.
The latest proposals add to a series of deep cuts at Telstra in recent years. The company previously announced plans to remove 2,800 enterprise roles as part of a broader restructuring program, and just eight months ago moved to axe a further 550 positions. Executives have flagged that advances in automation and AI are likely to allow further workforce reductions by the end of the decade.
Investor reaction has so far focused on Telstra’s ability to hit ambitious cost‑saving targets in the face of intense competition and rising network and spectrum costs. But for thousands of Telstra staff – particularly in the enterprise division – the latest email from the CEO marks the beginning of yet another anxious consultation period, as Australia’s flagship telco reorganises itself for an AI‑driven future.
