Telstra’s Restructuring: A Sign of the Times for Australian Tech Jobs?
Telstra is poised to cut approximately 650 jobs, adding to the 550 redundancies announced in July 2025, as the company accelerates its AI integration and streamlines operations. The latest cuts involve a combination of roles being eliminated and shifted offshore, primarily to India, through partnerships with Infosys and Accenture.
The Dual Strategy: AI and Outsourcing
The telco’s strategy centers around two key pillars: leveraging artificial intelligence to improve efficiency and customer experience, and utilizing global capabilities, particularly in India, to reduce costs. This approach is exemplified by the $700 million joint venture with Accenture, established in early 2025 to accelerate Telstra’s data and AI roadmap.
Infosys Partnership: A Fresh Wave of Outsourcing
In addition to the Accenture JV, Telstra is proposing a five-year strategic partnership with Infosys, an India-based technology company. This collaboration will see some function currently handled by Telstra employees move to Infosys, resulting in the reduction of approximately 442 roles. Affected employees are being offered the opportunity to apply for positions with Infosys, but acceptance is not guaranteed.
Employee Options: Transition or Redundancy
Telstra is presenting affected staff with two primary options: applying for a role with Infosys or accepting a redundancy package. Those who choose to apply for positions with Infosys will be jointly assessed by Telstra and Infosys. Employees who do not apply, or are unsuccessful in their application, will be eligible for redundancy benefits and support services.
The AI Joint Venture: Shifting Focus
The Telstra Accenture Data & AI Joint Venture is also undergoing changes, with up to 209 positions potentially being cut as projects evolve and work is moved to Accenture’s specialist hub in India. The JV aims to deliver Telstra’s data and AI roadmap more quickly by utilizing Accenture’s global capabilities and AI expertise.
Connected Future 30: The Driving Force
These changes are all part of Telstra’s “Connected Future 30” strategy, a five-year plan to integrate artificial intelligence into the business and improve customer experiences. CEO Vicki Brady has emphasized the necessitate to reduce complexity and operate more efficiently to achieve the goals of this strategy.
What Does This Mean for the Australian Tech Landscape?
Telstra’s restructuring reflects a broader trend in the Australian tech sector: a growing emphasis on AI-driven automation and the outsourcing of certain functions to lower-cost locations. Whereas AI promises increased efficiency and innovation, it also raises concerns about job displacement and the future of work.
The Rise of AI and the Changing Role of Tech Professionals
The increasing adoption of AI is reshaping the skills required in the tech industry. While some roles may become redundant, new opportunities are emerging in areas such as AI development, data science, and AI ethics. Australian tech professionals will need to adapt and upskill to remain competitive in this evolving landscape.
FAQ
- How many jobs are expected to be cut in total? Approximately 650 jobs are expected to be cut, combining the latest announcements with previous redundancies.
- Where are the jobs being moved? Primarily to India, through partnerships with Infosys and Accenture.
- What options are available to affected employees? Employees can apply for roles with Infosys or accept a redundancy package.
- What is the Connected Future 30 strategy? It’s a five-year plan to integrate AI into Telstra’s business and improve customer experiences.
Pro Tip: Stay ahead of the curve by investing in continuous learning and developing skills in emerging technologies like AI and data analytics.
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