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TelstraClear has folded up its strategy and new ventures division previously responsible for its Tauranga mobile phone project.
Former head Kevin Millar will become acting chief operating officer and will not be replaced in his strategy and new ventures management role.
Spokesman Matthew Bolland said TelstraClear's "leadership team" would take responsibility for Millar's vacated position. He also confirmed some of the staff involved in the Tauranga mobile project had left the company.
The current chief operating officer, Luigi Sorbello, departs next month.
Long-time Telstra staffer Sorbello, who was on secondment to the role, returns to Australia to become director of Telstra's core network.