Telstra CEO, David Thode, has started setting up the telecommunications carrier for the future with the axing of up to 300 executives. This, say analysts, could lead to a rise in their share price.
Among those to have left the carrier is international retail head Drew Kelton; Christophe Bur, the brains behind the T-Hub touchscreen device; and Geoff Booth who was responsible for negotiating an $11 Billion dollar deal with the Federal Government.
The cuts, designed to speed up decision making, is set to be seen as a positive move by analysts, as Thodey trims Telstra to be more of a product, marketing and services operation than an infrastructure company following the recent sale of assets to the NBN Co, who is currently rolling out a new fibre broadband network in Australia.
Some of the 30 top-level executives who are being shown the door are understood to have been with the telco for many years, and presumably will leave with considerable payouts. They include some Telstra directors, according to Communications Day.
Julia Foley, Telstra’s recently appointed deputy head of communications, said: “These changes are about making our business simpler, removing duplication and increasing the speed of decision-making. All of the changes are intended to make processes simpler for our front-line staff, enabling them to make things happen faster and serve customers better.”
The current management restructure is the third time Mr Thodey has reshuffled his top deck since replacing the outspoken Sol Trujillo a little over a year ago.
More job cuts are expected to come later in the year as Thodey continues his business simplification strategy. In April, the telco confirmed union claims that another 900 jobs could be removed over the coming year.