Australian telco giant Telstra to slash up to 2,800 jobs

Leading Australian telecoms company Telstra said Tuesday it would slash up to 2,800 jobs, shedding nine percent of its workforce as it keeps pace with "rapid advances in technology".

Chief executive Vicki Brady said the job cuts would save the company around US$230 million, setting it up to better deal with "ongoing inflationary and cost pressures".

Telecoms firms around the world are confronting seismic industry changes, grappling with the rise of artificial intelligence as traditional offerings such as landline phones become obsolete.

"Our industry and the world we are operating in is fast changing," Brady told reporters.

"We have new and different competitors. We have rapid advances in technology. Our customer needs continue to evolve."

Earlier this year Telstra, which employs some 30,000 staff, announced plans to scale up its use of AI tools in customer service.

Telstra trades on the Australian stock exchange and has a market capitalisation of US$27 billion (Aus$41 billion).