Australian telecom Telstra to ax 8,000 jobs to save $740M

June 20, 2018 - 2:48 am

CANBERRA, Australia (AP) — Telstra Corp., Australia's largest telecommunications company, has announced plans to ax 8,000 jobs — one in four employees — over three years in a bid to save 1 billion Australian dollars ($740 million).

Telstra shares fell more than 7 percent on the Australian stock market on Wednesday after the announcement, to its lowest price since 2011.

The company's chief executive, Andy Penn, told reporters, "We have to do this because I think as an industry we're at a tipping point."

Telstra warned in May that earnings for the current fiscal year that ends on June 30 will likely be at the bottom of its guidance range of AU$10.1 billion to AU$10.6 billion, blaming increasing competition in mobile and fixed broadband, and rising costs from a new national broadband network.

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