Telstra workers to pay restructure price as telco races to reaffirm profit guidance

Telstra's plans to sack 2,800 workers - or 9 percent from its 31,000 workforce - is mainly about meeting profit guidance in a competitive world for telcos. In restructures, staff are often seen as the first option given the weight on costs and immediate talks have begin with 377 workers. Telstra shares were 2.7 percent lower by yesterday's close as investors appeared uncertain about the cost-cutting strategy. Telstra CEO Vicki Brady reaffirmed Telstra's underlying profit guidance of between $8.4 billion and $8.7 billion for this financial year.