Telstra’s latest financial results are in, and while the company is reporting a billion-dollar profit, the news comes with a twist. In 2025, Australia’s largest telecom company slashed more than 2,300 jobs as part of its ongoing efforts to streamline operations and cut costs. But what does this mean for Telstra’s future—and for its employees?
A Profitable Year, But At What Cost?
Telstra’s half-year report for the 2026 financial year showed impressive profits of $1.2 billion, marking an 8.1% increase from the same period the previous year. This figure exceeded analysts’ expectations, giving the company a much-needed boost. However, while the profits were healthy, they didn’t come without sacrifices. Telstra’s total revenue saw a decline of $132 million from product sales, and the company reported that it had reduced its labor expenses by 5.8%, saving a total of $118 million.
The major driver of these savings? Job cuts. A total of 2,356 positions were eliminated in 2025, with more than 1,000 cuts happening in the last six months of the year. While this reduction was framed as part of a larger strategy to improve efficiency and reduce operational costs, it also speaks to a growing trend across industries of businesses attempting to streamline their operations in the face of increasing financial pressures.
Strong Cost Control, But Fewer Jobs
CEO Vicki Brady was quick to point to strong cost control as a key reason for Telstra’s stronger-than-expected profits. “We delivered ongoing growth in earnings, reflecting strong cost control and disciplined business management,” Brady stated to 9News. While cost-cutting measures are essential for staying competitive, the company’s decision to trim its workforce raises concerns. Critics argue that the job losses reflect a broader issue in the Australian economy—rising costs and job insecurity in large corporations.
At the same time, Telstra’s focus on “discipline” and “cost control” might leave many wondering whether this focus on short-term profit maximization could come at the cost of long-term stability. Telstra’s labor cuts were part of a broader restructuring plan that has involved streamlining business units and improving internal processes. But with fewer employees, it’s possible that customer service and internal innovation could suffer.
What’s Next for Telstra?
The rise in Telstra’s share price following the announcement shows that investors are pleased with the company’s efforts to rein in costs, but there’s no denying that the road ahead will be rocky. As the company continues to shed jobs and streamline its operations, the long-term effects on employee morale, customer satisfaction, and the company’s overall reputation remain to be seen.
In terms of growth, Telstra is betting on continued investment in its 5G network and other key infrastructure projects, such as fiber expansion. If these projects go well, the company could stabilize its workforce while continuing to build its future. But if the economy continues to face challenges, these gains may take longer to materialize.
