Ann: Telstra announces new CEO of Telstra InfraCo, page-5

—Telstra made some big announcements, but the market didn't react favorably. Here’s why Telstra’s stock sold off despite the news:

• Job Cuts & Cost Reductions: Telstra announced it would cut 2,800 jobs as part of a business reset. While cost-cutting can improve efficiency, large layoffs often raise concerns about future growth and stability.

• Pricing Model Changes: Telstra scrapped its CPI-linked pricing model, which previously tied mobile service price increases to inflation. While this gives Telstra more flexibility, investors may worry about uncertainty in future pricing strategies.

• Market Sentiment: Investors may have expected stronger growth signals or clearer profitability improvements. Instead, the announcements focused on restructuring, which can take time to show results.

• Competitive Pressures: Telstra operates in a highly competitive telecom market, and any uncertainty around pricing or cost-cutting can make investors cautious.

Even though Telstra’s leadership framed these changes as positive long-term moves, the market seems to be waiting for clearer signs of growth before buying in.