(Adds detail of job cuts and economic context) SYDNEY, July 20...

(Adds detail of job cuts and economic context)

SYDNEY, July 20 (Reuters) - Australia's biggest telecommunications company Telstra (TLS) said on Thursday it planned to cut nearly 500 jobs due to changes from digitisation and automation, as well as its exit from some legacy products and services.

The proposed reduction amounts to just over 1% of the company's total workforce but come at a time when businesses around the world are starting to hunt for savings amid persistent inflation and rapidly increasing interest rates.

The cuts were part of an effort "to address impacts from exiting legacy products and services as well as gaining efficiencies from increased digitisation, automation and new technology" a Telstra spokesperson said in an email.

The cuts would not affect customer-facing units, they added.

"If the change proceeds, it will see some of our people leave the organisation and the creation of new roles, with a net reduction of around 472 jobs," the spokesperson said.

Australian employment remained near a 50-year low in June, government data released on Thursday showed, but some companies are starting trim their workforces as energy, fuel and wage bills mount.

Listed property developer Lendlease (LLC) plans to cut about 10% of its workforce, Reuters reported this week, citing an internal memo.