News: TLS Australia's Telstra says will cut 1,400 jobs in cost-cutting drive, page-6

That is the case for most large diversified companies unless the board and CEO have their fingers on the pulse. It is all about committees and not making decisions unless all are on board. Most people hate being the odd one out in that type of environment. Which is why they hold so many meetings.

If the cuts come from this level of management, then we should expect no degradation of service. If however the cuts come from the "factory floor", retail clients will have more and more issues with their services especially if in outer and regional areas.

The reality is that 1,400 people are about to lose their jobs. Are they based in Australia? If they are, then further pressure is being applied to an already depressed economy which will have repercussions well beyond Telstra's share price and earnings.