Australia’s dominant telco Telstra (TLS.AU) is set to shed 1,400 jobs according to local media reports, as the company looks to pare costs as earnings get crunched by the National Broadband Network and rising competition.
The company has targeted cost savings of AUD1 billion over five years. Telstra’s shares are down 14% this year, with the stock taking a beating in April after rival TPG Telecom (TPM.AU) announced plans to build a fourth mobile network.
Here’s some details from The Australian Financial Review (Subscribers can find the story here):
Telecommunications giant Telstra is set to cut up 1400 jobs from ‘operations’ as it looks to slash costs and deal with an up to $3 billion earnings hole expected because of the national broadband network.
Telstra chief executive Andy Penn is expected to brief staff later today.
Last year, Telstra announced it was looking for $1 billion in cost savings over the next five years.
The telco needs to fill a $2 billion to $3 billion hole in earnings before interest, tax, depreciation and amortisation following the completion of the rollout of the national broadband network in 2020.
Goldman Sachs upgraded Telstra to buy earlier this month, saying the stock was attractively priced, offered a tempting dividend and has a quality network. For more details please read Telstra: Goldman Sachs Upgrades to Buy.
June 14, 2017 at 07:47AM
from Robert Guy
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