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.