Telstra To Reveal Job Cuts
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Tomorrow is crunch day for hundreds of Telstra staff. In a series of briefings to the investment community and the media New Chief Executive Sol Trujillo will reveal how he plans to reshape Telstra’s future.

 However, the occasion is has been set up so that media get to hear but – at least not for six hours – question the master-plan. Telstra’s big day looms tomorrow. In the company’s strategic review, chief executive Sol Trujillo will reveal how he plans to reshape Telstra’s future. However, the occasion is has been set up so that media get to hear but – at least not for six hours – question the master-plan.

Trujillo’s “briefing” sessions have been set over two venues and two days, with stockbroking analysts – not usually known for their probing questions – given first crack.

The expectation is the Telstra CEO could announce up to 8000 job losses from the company’s 46,000-strong workforce as part of a major restructure. But that’s only the beginning.

As some see it, the question is how will Trujillo cover three issues that need to be canvassed before Telstra’s 51.8 percent government shareholding is flogged off?

The first issue is within the organisation: can Telstra move from an old-fashioned monopolist owner of copper wire and how it should it charge its wholesale and retail customers?

The second is political. This largely concerns “The Bush”, which wants subsidies to continue to support old-fashioned services, even though new, wireless technologies may soon fill the gap.

The third is regulatory. Telstra doesn’t want regulation. A large section of the Government and the Australian Competition and Consumer Commission regards Telstra’s control of the copper wire network as a monopoly that needs tight control, as do its competitors in the industry.

The battle with the ACCC hasn’t been helped by last week’s attack of Telstra’s chairman Donald McGauchie on ACCC chairman Graeme Samuel.

The circus starts at 8:45am tomorrow in Sydney, followed by a technology workshop for analysts the following day.

Media still and TV camera crews will get a brief opportunity to record the harbourfront locale. And then they’ll be (as Telstra’s flacks put it) asked to leave the auditorium. “Journalists may remain in the designated media seating area inside the auditorium throughout the meeting. However no recordings may be made for broadcast,” Telstra’s dicta say.

“At the conclusion of the analyst briefing, analysts will have an opportunity to ask questions. Members of the media will be permitted to observe this question-and-answer session, but not ask questions.”

After the “analysts” have picked the bones – and six hours or so after kick-off – Trujillo will host a press conference, at 2.45pm.

On Wednesday Telstra will host a technology workshop for analysts at The Westin Hotel, Sydney. Media are invited to attend the technology workshop. There may be “a short opportunity” at the end of the event.