Telstra to axe 550 roles including in enterprise business

Telstra plans to lay off 550 employees as part of an ongoing overhaul of its enterprise business and structural changes across other parts of the organisation.

The 550 affected roles represent less than two percent of Telstra's total full-time workforce of 31,876, as of the end of last year.

Telstra referred to the 550 roles as a "proposal" and a "net reduction", suggesting the number could be larger, but offset by the creation of other roles.

The decision follows Telstra's move to terminate around 1900 employees last year as part of a broader overhaul of its enterprise business and cost-cutting measures in its network applications and services business.

"These changes are largely driven by the ongoing reset of our Telstra Enterprise business, as well as improvements to the structure and processes of other teams across our organisation," Telstra spokesperson told Reuters in an email.

The company clarified that the proposed job cuts are not related to its adoption of artificial intelligence.

Telstra's enterprise business has suffered in part due to customers holding back on professional services spend.

The telco previously cut about 377 staff from its enterprise business in May last year.

Updated 10.24am: To reflect in the headline that not all cuts are in the enterprise business.