Telstra Sets New Strategy to Improve Customer Experience, Simplify Structure and Cut Costs

Telstra today announced a new strategy to lead the Australian market by simplifying its operations and product set, improving customer experience and reducing its cost base.

The strategy, named Telstra2022, has four key pillars:

  • Radically simplify our product offerings, eliminate customer pain points and create all digital experiences
  • Establish a standalone infrastructure business to drive performance and set up optionality post the nbn rollout
  • Greatly simplify our structure and ways of working to empower our people and serve our customers
  • Industry leading cost reduction programme and portfolio management

The changes form a three-year plan building on the strategic investments Telstra announced in 2016.

Telstra CEO Andrew Penn said the strategy would fundamentally change the nature of telecommunication products and services in Australia by eliminating many pain points for customers.

“We will take a bolder stance and use the disruption in the telecommunications industry to lead the market for the benefit of our customers, employees and shareholders,” Mr Penn said.

“The rate and pace of change in our industry is increasingly driven by technological innovation and competition. In this environment traditional companies that do not respond are most at risk. We have worked hard preparing Telstra for this market dynamic while ensuring we did not act precipitously. However, we are now at a tipping point where we must act more boldly if we are to continue to be the nation’s leading telecommunications company.”

A consequence of the plan is an expected net reduction in employee and contractor numbers of 8,000, including removing one in four executive and middle management roles to flatten the structure.

“We are creating a new Telstra that is able to continue to lead the market. In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change. This means that some roles will no longer be required, some will change and there will also be new ones created,” Mr Penn said.

“We understand the impact this will have on our employees and once we make decisions on specific changes, we are committed to talking to impacted staff first and ensuring we support them through this period.”


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