Thursday, November 17, 2005

Telstra plans to trim a fifth of work force 

From the International Herald Tribune (paper version) yesterday: Telstra, the dominant telco in Australia, plans to cut 10.000 jobs over the next 5 years as part of a restructuring plan aimed at reviving earnings while the goverment prepares to sell its majority stake.

Telstra's new US CEO Solomon Trujillo unveiled a 5-year investment plan valued at $7.3 billion that places heavy emphasis on broadband and services while trying to slash costs.

He wants to transform Telstra from a lumbering fixed-line monopoly to a market leader for for the latest wireless services (from his US West and Orange background). He is also taking up the fight against the regulator "hurting" the companies prospects. Good luck ;-)

Solomons basic statement: "The cost structure of this business is too high. Period. End of story"

How true.

Ahh, finally the one true religion of American Corporatization of Australia has truly begun to take hold! Those pesky regulators are so troublesome, and, of course all those humans (cost structure) and the horror, unionized ones at that!
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