Fed: Telco prepares for job cuts to purge the "frozen middle"

AAP General News (Australia)
12-17-2004
Fed: Telco prepares for job cuts to purge the "frozen middle"

SYDNEY, Dec 17 AAP - Telecommunications giant Telstra will shed 10 per cent of its
staff in preparation for full privatisation, it was reported today.

Senior management was informed about the purge in emails sent out on Monday, The Australian
newspaper said.

The changes, the result of an 18-month review, would begin early next year.

Telstra human resources director Bill Scales refused to tell the newspaper how many
jobs would be lost but said the "frozen middle" management would be affected.

"For us the main driver is not numbers; it's about efficiency; it's about capability;
it's about getting accountability right; it's about getting the authority to meet the
customers needs," Mr Scales said.

"You will see the number of managers decline but they might be turned into technical
specialists, because that's what they actually are."

Telstra's heavily unionised field workforce of 16,000 people and call centre staff
will be largely unaffected by the cuts.

The newspaper said the axings might match the 10 per cent staff cuts by rival Optus,
which carried out a middle management purge three years ago.

This would amount to up to 4,300 job losses at Telstra.

AAP tam/was

KEYWORD: TELSTRA

2004 AAP Information Services Pty Limited (AAP) or its Licensors.