Telco giant, Telstra, has revealed plans to restructure its organisation, marking a significant shift from its traditional business.
Telstra COO, Brendon Riley, announced the restructure via an internal memo to staff on May 22.
Plans involve splitting operations into five groups, retaining its NBN group and Network Applications and Services. The three new groups which will be introduced are IT, Networks and Customer Service Delivery.
In the memo, Riley said the new operations model was different to the way the telco currently operated. The changes may result in some redundancies. As of December, it had 38,663 workers.
“It will give us clearer accountabilities and interactions across teams, removing confusion and improving the way we work together. By consolidating all our customer facing activities into one group, we will gain clarity of process responsibilities and deliver improved customer service outcomes," he said in the memo.
He stated its traditional businesses were coming under increasing margin pressure and the largest portion of its budget is spent supporting them.
"This is not a sustainable business model and we have an obligation to redefine our contributions to Telstra," he said. "These groups will create a new way of working for our business.
"Telstra Service Operations, Assets & Facilities and Labour & Contract Management will be accountable to optimise these capabilities across all groups and look at innovative ways to unlock future sources of value and opportunity in these areas.
The new model comes into effect from July 1.
In February, the telco cut 648 staff from its Sensis arm.