Telstra to Cut Jobs as AI Takes Bigger Role in Customer Service and Operations

Telstra Plans Workforce Reduction by 2030 as AI Adoption Accelerates

Telstra is preparing to reduce its workforce by 2030, driven by efficiency gains through artificial intelligence (AI). The telecommunications giant highlighted AI’s potential impact on customer service, software development, and autonomous AI agents during its annual investor day.

AI Integration and Workforce Changes

CEO Vicki Brady stated that AI will be a key factor in reshaping the company’s workforce. “We will embrace AI, as every business will need to, and we expect the pace of change over the next five years to be extraordinary,” she said. While the exact size of the future workforce remains uncertain, Brady confirmed it will be smaller than today’s 31,000 full-time equivalent employees.

Telstra is currently exploring agentic AI—systems capable of autonomous decision-making and task execution without human intervention. Although these AI agents are not yet interacting directly with customers, Brady anticipates their integration alongside human staff in the near future.

Focus Areas for AI Efficiency

Chief Financial Officer Michael Ackland emphasized AI’s role in customer engagement, where Telstra spends over $2 billion annually on operations such as sales, contact centers, billing, and customer management. “We think AI will change these activities fundamentally,” he said.

Telstra has already implemented generative AI to assist with customer service tasks like summarizing calls, a process previously performed manually by staff. Additionally, the company is investing more than $1 billion in software development and IT, where AI is expected to significantly alter workflows.

Network management is another focus, with plans for AI systems capable of self-healing and proactive issue detection, which could lead to cost savings and improved service reliability.

Industry Perspectives and Strategy Outlook

Despite the promise of AI efficiencies, some analysts remain cautious about immediate job cuts due to AI investments. Gartner’s Aaron McEwan expressed skepticism about quick productivity gains flowing through organizations after AI-related announcements from companies like CrowdStrike.

Telstra’s AI strategy is part of its Connected Future 30 plan, which emphasizes cost discipline and operational efficiency over the next five years. The company aims to rank in the top 25% worldwide for both employee engagement and AI maturity by 2030.

• Expect workforce size to decrease by 2030 due to AI-driven efficiencies
• Development and deployment of autonomous AI agents alongside staff
• Generative AI currently supports customer service tasks
• AI to transform software development, customer engagement, and network management
• Investment of over $1 billion in IT and software, focusing on AI integration

For executives looking to understand how AI can reshape operations and staffing, monitoring Telstra’s approach offers valuable insights into integrating AI while managing workforce transitions.

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