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2014-09-01

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Telstra says it will go ahead with Global Services job cuts.

Telstra has formally notified the CWU that it intends to proceed with the proposed redundancies in Global Enterprise and Services.

Telstra announced in late July that it intended to offshore a major part of its cloud and managed network services to industry “partners” as part of its regional expansion strategy.

At the time just under 700 jobs were targeted. The total is now 633, with the number of permanent Telstra jobs being eliminated now standing at 412 as opposed to the original 463.

221 contractor or agency positions will also be made redundant.

The table below shows the areas most affected by the cuts.

Area Number of jobs lost
Managed Network Services and Operations  249
 Cloud Service Delivery 104 
 Integrated Solutions 19
Proffessional Services  203
Integrated Service Management   51
Customer Service Unit 7

 

But the loss of jobs and of skills is still unacceptable, especially coming from a growth area. Telstra has just reported a 17.7% jump in annual revenue from cloud services operations within Network Assisted Services (NAS) which was folded into the newly created Global Enterprise and Services division late last year. Managed network services revenues grew by 20.7%.The modest reduction in the number of redundancies originally proposed is of course welcome as it the potential for 11 new positions in Cloud Services and Managed Network Services and Operations which Telstra has flagged. These positions will be in Sydney and Melbourne.

Telstra is anticipating further growth in these areas, in both the domestic and regional markets.

Telstra says these latest redundancies will occur over a 13 month period, between September 2014 and October 2015. It must work to ensure that affected staff are found new jobs in the business over that time.

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