Telstra-Accenture Data and AI joint venture to cut 209 positions

The year-old Telstra-Accenture Data and AI joint venture is proposing to cut about 209 positions with some discontinued and others shifted to India.

The seven-year joint venture was announced in January last year and is intended to help Telstra modernise its data and AI platforms, and build AI tools and skills.

Telstra offered its internal “core data and AI” staff a place in the joint venture when it formed.

There was also an expectation set that the venture would “become more efficient and streamlined as the acceleration of Telstra’s data and AI roadmap is delivered.”

A spokesperson for the joint venture confirmed that a proposal had been put to the joint venture team on Tuesday.

“We spoke with the Data & AI joint venture (JV) team about proposed changes to our workforce, including reducing roles where work is no longer needed, and moving some work to the JV team in India,” the spokesperson told iTnews.

 “These changes would see the JV use Accenture’s global capabilities, advanced AI expertise and specialist hub in India to deliver Telstra’s data and AI roadmap more quickly. 

“We anticipate that over time this would result in improved cost efficiencies and bring an enhanced experience to Telstra’s customers.”

The spokesperson said that a consultation phase has begun with impacted Australian-based staff of the joint venture.

A timeline for the consultation was not immediately clear.

“If the changes proceed, the JV will support affected team members to find redeployment opportunities either at Telstra or at Accenture where possible, or will provide access to our career transition program and redundancy benefits,” the spokesperson said.

A source with knowledge of the reductions told iTnews that the joint venture had underperformed on aspects of its delivery. That included the introduction of AI-enabled experiences and ensuring that new data platforms had capabilities to match existing ones  earmarked to decommissioned.

The joint venture’s spokesperson refuted this, saying that “strong progress” had been made, “including decommissioning legacy platforms, establishing responsible AI governance, streamlining data architecture, and opening access to global innovation via [a] Silicon Valley hub.”