Telstra shares are at a seven-year low, down 5% as the market reacts to FY19 earnings guidance. This comes after the announcement to cut costs through the reduction of 8,000 employees.
The bigger picture – “Telstra 2022” Strategy to overhaul the telco looks like:
- simplifying product offerings and creating all digital experiences
- a standalone infrastructure business
- simplifying structure; and
- Delivering industry-leading cost reduction programme.
With these outcomes, they plan to:
- reduce the number of consumer and small business plans from 1800 to 20
- reduce 2-4 layers of management across the company
- lead in all key industry surveys for network performance
- increase productivity program by a further $1bn to $2.5bn; and
- monetize up to $2bn in assets over the next 24 months to strengthen the balance sheet.