Telstra to slash jobs, cut call centres

Telstra plans to slash 7000 jobs as part of its $550 million savings drive over the next three years, a Senate committee has been told.

This is in addition to reducing its number of call centres around Australia from 280 down to fewer than 40 mega centres.

Finance director at the telco John Stanhope told a budget estimate hearing Telstra will potentially save $550 million this year and another $100 million flow-on into the next financial year.

He did not identify the location of the call centres facing closures but said it will result in savings of $60 million. "About 26 products are making losses for us and we have probably tolerated that for too long; PABX maintenance is not a profitable business for us," Stanhope said.

"We are going to hand that work back to the vendors; we expect to save $60 million from outsourcing our IT applications development work."

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