Telstra's marketing team faces further cuts

News Plus 8 Feb 2021 - 2 min read

Telstra's marketing team faces further cuts

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Tags: Telstra Jeremy Nicholas digital in-housing

Australia's largest telco provider is set to make further cuts to its marketing department as it restarts a $1bn restructure. CMO Jeremy Nicholas has briefed marketing teams, say industry insiders, though in-house digital and design units may avoid the axe.

What you need to know:

Telstra is to make cuts to its marketing department as part of a broader 1,400 job cull.
CMO Jeremy Nicholas informed staff last week via an all-in meeting, confirming multiple roles will be affected.
Industry insiders claim its in-house digital and design teams will be spared from the majority of cuts.
Telstra refused to comment on specifics, stating "if these changes go ahead, we’ll also work with those impacted to help them secure another role at Telstra".
In a company-wide email seen by Mi3, CEO Andrew Penn said the restructure aims to address internal complaints surrounding "duplication and siloed working".

On the line

Telstra's marketing division faces further cuts, as the telco continues to restructure its operations.

The telco outlined its T22 overhaul in 2018. It aims to simplify business structures, cut out management layers and save $1bn in costs, with some 8,000 roles axed in total.

Paused last year, the next phase of the restructuring program affects 1,425 jobs.

Industry insiders told Mi3 that Telstra CMO Jeremy Nicholas confirmed the cuts in an all staff meeting following a broader announcement from CEO Andrew Penn. Another source told Mi3 Telstra's in-house digital and design teams would likely avoid redundancies.

According to some industry players with visibility on Telstra's marketing activities, last week's marketing cuts were not as deep and wide as previous rounds pre-Covid which saw a much bigger consolidation to roles and headcounts.

"We don't get the sense right now these cuts are as massive as the previous rounds," one told Mi3. "Telstra's internal studio is working pretty well for them."

Another said: "To be honest, these cuts haven't really hit the radar. It might just be a bit of trimming. There was a point in previous rounds where everyone was ashen-faced."

Telstra could not reveal specifics of the cuts but confirmed affected teams have been notified.

"Last week we briefed some of our teams on proposed changes that would see a net reduction of up to 1,425 roles across Australia and our international locations as we continue to transform Telstra," said a spokesperson.

"If these changes go ahead, we’ll also work with those impacted to help them secure another role at Telstra. Where that’s not possible, they’ll be supported by our career transition program and industry-leading retrenchment benefits."

With the cost cutting programme into its third year, the bulk of the cull, some 6,000 roles, took place in 2019.

In a letter to staff seen by Mi3, CEO Andrew Penn suggested the next round of changes could alleviate issues such as "duplication and siloed working", which staff have identified as problematic.

"By the end of 2021 our company-wide operating model will mean we can better plan, prioritise and allocate people and funding to our strategic priorities," per Penn's letter.

"Our company-wide operating model will improve our end-to-end planning so that we have a single view of all the work we have prioritised, the people needed to complete it and the funds available."

News of the cuts follows Telstra's commitment last week to bring call centres back to Australia by mid-2022. The company has previously called for Australia's corporates to practice "economic patriotism" to rebuild the post-Covid economy.