Telstra Adopts Cost Cutting Exercise as 2022 Strategy, for Improvised Customer Exercise
Telstra is determined to slash 8000 jobs from its workforce. The decision is made to improvise customer experience and to reduce its cost. The decision was made after the company reached
a peak point. The telco giant is looking forward to cutting off approximately 8000 employees and contractors including four executive and middle management roles.
Chief executive Andy Penn revealed about the company’s uptight situation along with the requirement of fundamental transformation in the telecommunication sector. The new structure is likely to enhance the productivity program by $1 billion to $2.5 billion resulting in job loss for next three years.
The cost cut approach will have a strong impact on the role of management and executives in both onshore and offshore team. The transition is assumed to attract the cost of $50 million supporting the cost cut. On behalf of the company, Chief Executive Andy Penn said,
“When I look at a lot of the activity in the business, it’s dealing with issues and complications and problems that we’ve created for customers because of the complexity in the design of the product.That’s obviously very difficult news to share, because Telstra is an amazing organization, amazing family of people and that was why it was so important for me to speak to the teams first in delivering that news.”
He added,”It does raise the issue of ongoing employment as technology advances and obviously a lot of the technological advance makes many of these positions redundant because they’re aiming to reduce the amount of customer service calls, for instance, by two-thirds by 2022.”
Telstra before achieving its strategy on 2022, has laid out three year strategy which permits the company to concentrate on the four goals,
* Telstra is looking forward for cost reduction program for enhanced portfolio.
* It plans to frame a concrete structure to serve the customer more profieciently.
* It plans to become a solo infranstructure business to drive performance and options.
* Telstra is preparing itself to create digital experience by eleminating unusual customer experience and diversifying product offerings.