Telstra denies job-cut claims

Telstra Corp Ltd has denied reports that it will axe 8000 jobs as part of a planned pre-sale restructure being considered by chief executive Sol Trujillo.

"Telstra is in the middle of a strategic review but no decisions have been taken by the company at this point about jobs or anything else," Telstra spokesperson Warwick Ponder told AAP today.

A research note from investment bank Credit Suisse First Boston (CSFB) forecast that Telstra could save A$1 billion ($1.1 billion) by cutting 8000 jobs from its 46,000-strong staff by moving to a next-generation network (NGN).

NGN is a system that streamlines voice, data and multimedia services onto a single physical network.

"We estimate Telstra could save nearly A$1 billion per annum by undertaking company-wide restructuring of the labour cost base and implementing an NGN to consolidate its current networks and processes," CSFB said.

CSFB said Telstra was "burdened with an overly complex network" and that it was "far from efficient in relation to labour costs when compared with its closest peers".

Telstra's domestic labour cost base, including outsourcing, was 30 per cent less efficient than its nearest peer, Telecom New Zealand Ltd, CSFB said.

"With a declining revenue profile, we see Telstra's only longer-term earnings enhancement opportunity being delivered through a significant network restructuring program," CSFB said.

Telstra expects to announce the outcome of the strategic review in mid-November.

"Anybody making comments about jobs or anything else is purely speculating at this point and it should be seen in that light," Mr Ponder said.

"No-one can confirm anything at this point as there have been no decisions made."

Parliament last month passed bills enabling the federal government to sell its 51.8 per cent stake in Telstra in single or several tranches.

CSFB forecast that Telstra could sell some fringe assets, including its Hong Kong mobile subsidiary CSL for between A$1.6 billion and A$1.8 billion to offset the costs.

However, it was unlikely Telstra would surrender either its stake in Foxtel or New Zealand subsidiary TelstraClear, as both remained strategically significant, CSFB said.

Telstra shares last traded at A$4.20.

- AAP