Telstra quiet on management shake-out

Telstra is staying tight-lipped about information leaking from the company suggesting a management shake-out is under way following its announcement last November that it would restructure its business units.

Telstra spokesperson Michael Grealy has declined to comment on allegations from well-placed sources that Telstra last week issued redundancy letters to a number of mid-level executives formerly employed within Telstra Mobile, which now forms the core of a new business unit, Telstra Consumer and Marketing, headed up by Ted Pretty.

"As far as our workforce levels are concerned, like other companies, the levels move up and down depending on a wide range of factors such as customer demand, technological development or our business plan, but we do not wish to comment on individual cases like your call, today," Grealy told ZDNet Australia last week.

When asked to confirm that no redundancies had taken place, Grearly repeated that Telstra had "no comment" on the matter for ZDNet Australia.

The Communications, Electrical and Plumbing Union was last week standing by predictions - made shortly after Telstra announced the organisational changes - that the carrier's moves would impact on management positions more than the carrier's unionised staff.

"Evolution of our structure will also see continuing reduction in management layers, elimination of duplicate activities and reduction of corporate overheads through process improvement," said Telstra CEO Dr Ziggy Switkowski in a statement issued at the time the restructure was announced.

Under the reorganisation, Telstra has realigned the responsibilities of its management portfolios. Parts of the carrier's business previously managed by Telstra Mobile and Telstra Retail now come under a new management umbrella Telstra Consumer and Marketing, and Telstra has established a new group, Telstra Enterprise, to manage its business and government customers.

Telstra has also consolidated broadband, online and media businesses under a new management portfolio, Telstra Online and Media Services and expanded the sales and service jurisdiction of Telstra Country Wide.

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