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Telstra yet to confirm scope of job cuts

6000 rumoured to be under the axe

Telstra Corporation says it has not confirmed how many jobs will be cut under its plan to simplify its business, as unions demand more information from the telco giant.

Media reports on Thursday suggest Telstra will cut 6000 staff over the next three years as part of its $1 billion plan to reverse its falling financial performance.

Telstra says its new strategy is aimed at growing market share and will involve a simplification of its business, cost cutting and an improvement in customer service.

Senior executives, including chief executive David Thodey, have said the plans would involve job cuts, but the telco said on Thursday it was yet to be determine how many.

"Telstra has not confirmed the number of affected employees and when we do, we will first speak directly to them," a spokesperson said.

Improving customer satisfaction would be done through simplifying customer processes, reducing bureaucracy, particularly in management, and introducing optional self-service systems online, Telstra said.

The Community and Public Sector Union (CPSU) is seeking more information from Telstra about the extent of planned job cuts.

"You can not cut thousands of jobs without having a major impact on customer service," CPSU Assistant National Secretary Louise Persse said.

"Telstra's frontline service delivery areas are already stretched.

"We can't see how further cuts will improve things."

Telstra told investors on Wednesday it would incur $220 million in redundancy costs in the 2010/11 financial year.

"It is always difficult to make decisions that inevitably affect jobs," the Telstra spokesperson said.

"However, Telstra offers retraining and generous redundancy arrangements to affected employees."

Telstra has cut over 12,000 jobs since 2005 as part of a transformation process implemented by former chief executive Sol Trujillo.

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More about: Community and Public Sector Union, CPSU, Telstra

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