Telstra Proposes Up to 650 Job Reductions Amid AI Venture Restructuring and Infosys Partnership
Telstra, along with its artificial intelligence (AI) joint venture with Accenture, has proposed up to 650 job reductions as part of a significant operational overhaul. These proposed changes include 209 roles within the AI joint venture and approximately 442 additional positions across Telstra's Enterprise and Customer divisions. This restructuring coincides with a proposed strategic partnership with India-based Infosys.
These proposed changes are aimed at streamlining operations, enhancing competitiveness, improving efficiency, and aligning with Telstra's "Connected Future 30" strategy.
Proposed Job Reductions Detailed
The total of approximately 650 proposed job reductions spans various segments of Telstra's operations. This figure encompasses:
- Telstra-Accenture AI Joint Venture: 209 proposed job reductions are slated within the AI joint venture, which was announced in early 2025 with a $700 million investment.
- Telstra Enterprise and Customer Divisions: Over 400 additional potential job losses, specifically around 442 roles, are targeted in Telstra Consumer. These reductions align with evolving customer expectations and digital experiences.
A spokesperson for the Telstra-Accenture AI Joint Venture stated that proposed changes involve reducing roles where work is no longer required and relocating some responsibilities to the JV team in India. This move is intended to leverage Accenture's global capabilities, advanced AI expertise, and its specialist hub in India to accelerate Telstra's data and AI roadmap. The precise number of jobs to be moved to India was not specified. The 209 proposed job reductions are currently under consideration, with the final number of redundancies potentially being lower.
Strategic Shifts and New Partnerships
Telstra has proposed a five-year strategic partnership with Infosys, an India-based company specializing in IT and outsourcing services. This partnership would involve moving some work to Infosys and subsequently reducing certain roles within Telstra, particularly within the Telstra Enterprise and Telstra Customer divisions.
Telstra CEO Vicki Brady informed staff via email about the proposed changes. She stated they are intended to streamline operations, enhance competitiveness, and improve efficiency as part of the company's "Connected Future 30" strategy. This strategy aims to integrate artificial intelligence into the business.
Supporting Affected Employees
Affected employees have been presented with options, including submitting an Expression of Interest to move to Infosys, though acceptance is not guaranteed. Employees not selected or not applying for an Infosys role would proceed through the redundancy process.
For JV staff, redeployment opportunities within Telstra or Accenture are being explored.
Telstra affirmed its commitment to consulting with staff and exploring redeployment opportunities for impacted individuals. Those leaving the company are slated to receive retrenchment benefits and support services. These proposed reductions are separate from an earlier announcement in July 2025, which saw 550 Telstra Enterprise employees affected. Telstra had clarified at that time that those redundancies were not related to its investments in artificial intelligence.
Industry Perspective
Independent telecommunications analyst Paul Budde commented on the broader industry context. He noted that commercial pressure is compelling telecommunications companies, which are facing flat revenues, to reduce costs. Budde specifically identified AI and foreign labor as methods used to achieve these cost reductions.
Budde raised questions regarding where enduring expertise, operational control, and decision-making will ultimately reside once the initial development phase of such joint ventures concludes.
He further suggested that roles established during the start-up phase of a JV may become redundant as the venture reaches a more mature stage. Budde emphasized the importance of whether AI investments contribute to strengthening local capabilities or primarily focus on improving cost efficiency through global delivery models in Australia.