Australian telecom giant Telstra to cut 8,000 jobs

Updated 20 June 2018
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Australian telecom giant Telstra to cut 8,000 jobs

SYDNEY: Australia’s dominant telecommunications company Telstra Wednesday announced plans to axe 8,000 jobs — a quarter of its workforce — as part of a drastic new strategy to cope with an increasingly competitive industry.
The decision by the company, one of Australia’s largest employers, is part of a shake-up targeting an extra Aus$1 billion ($750 million) in cost-cutting by 2022, on top of Aus$1.5 billion previously announced.
To create a leaner operation, it will also split its mobile and infrastructure divisions into separate businesses.
“We are creating a new Telstra that is able to continue to lead the market,” said chief executive Andrew Penn.
“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.”
The cuts come less than a month after Telstra said its 2017/18 earnings will likely be at the bottom of its guidance range of Aus$10.1 billion to Aus$10.6 billion, blaming increasing competition in mobile and fixed broadband.
The warning sent its shares tumbling to a more-than six-year low of Aus$2.71.
Telstra employs 32,000 people across 20 countries, according to its most recent annual report. Of the jobs to go, one in four will be executive and middle management roles.
Penn said the company had to take action to stay on top in a highly competitive market.
“The rate and pace of change in our industry is increasingly driven by technological innovation and competition,” he said.
“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.”

Telstra has a range of businesses including fixed broadband, mobile, data and IP, network application and services, digital media and international.
Part of its new strategy will see it create a wholly-owned standalone infrastructure business unit from July 1.
Called Telstra InfraCo, it will comprise the telecom’s fixed-network infrastructure including data centers, non-mobiles related domestic fiber, international subsea cables, exchanges, poles, ducts and pipes.
Its services will be sold to Telstra, wholesale customers and Australia’s National Broadband Network, controlling assets with a book value of about Aus$11 billion.
“As technology innovation is increasingly relying on connectivity, the role of telecommunications infrastructure is becoming more important,” said Penn.
“There is virtually no technological innovation happening today that does not rely on a high-quality, reliable, safe and secure telecommunications network.
“In this world our infrastructure assets are becoming more valuable. By creating a new infrastructure-focused business unit we will better optimize and manage these assets.”
Telstra also intends to “monetise assets of up to Aus$2 billion over the next two years to strengthen the balance sheet,” and has set aside Aus$600 million in restructuring costs.


New tech regulation ‘inevitable,’ Apple CEO Cook says

Updated 19 November 2018
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New tech regulation ‘inevitable,’ Apple CEO Cook says

  • ‘I’m a big believer in the free market. But we have to admit when the free market is not working. And it hasn’t worked here’
  • ‘I think it’s inevitable that there will be some level of regulation’

WASHINGTON: Apple CEO Tim Cook predicts that new regulations of tech companies and social networks to protect personal data are “inevitable.”
In an interview with news website Axios being broadcast Sunday on HBO television, Cook said he expected the US Congress would take up the matter.
“Generally speaking, I am not a big fan of regulation,” Cook said in an excerpt released by Axios. “I’m a big believer in the free market. But we have to admit when the free market is not working. And it hasn’t worked here. I think it’s inevitable that there will be some level of regulation.
“I think the Congress and the administration at some point will pass something.”
Cook has previously been a proponent of self-regulation, especially as concerns user data protection.
But following the scandal that saw data consultancy Cambridge Analytica obtain data from millions of Facebook users, Cook said the industry was now “beyond” the scope of self-regulation.
Facebook has been trying to fend off concerns about how well it protects user data and defends against use of the site to spread misinformation aimed at swaying elections.
Controversies that have battered Facebook since the 2016 presidential election in the United States have raised questions over whether co-founder Mark Zuckerberg should keep his post as chief executive.
Turning to gender inequality in the workplace, Cook said the tech industry has generally been strong in diversity, even though a male-dominated culture prevails.
“I agree 100 percent from a gender point of view that the (Silicon) Valley has missed it, and tech in general has missed it,” he said.
However, Cook added, “I’m actually encouraged at this point that there will be a more marked improvement over time.”