More Telstra Cuts and Closures

Telstra plans to cut 7,000 jobs as part of its $550 million savings drive over the next three years, a Senate committee was told yesterday.

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

Testra finance director John Stanhope told a budget estimate hearing the cuts will 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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