Benson, to paraphrase a comment in the Australian section (regarding "Telstra Freezing Job Cuts".)
"Headline says, Telstra Freezing Job Cuts.They are not freezing job cuts at all.The article quotes Telstra saying their redundancy program of 8,000 through to 2024 will continue but they will not be announcing any NEW job cuts in the next six months."
Telstra is also speeding up its 5G rollout - obviously to hit NBN where it hurts. eg 5g Wifi in homes as an alternative to slow NBN connections.
Penn also says "While it is crucial we maintain a strong position we also believe there a range of additional initiatives we can undertake now to help support the broader community."
Penn then said he expected full-year earnings to fall within guidance (albeit on the lower end).
Benson, not many companies (if any) of Telstra's size will be able fall within guidance. Kindly mention a few if you know any. I can't off the top of my head!
It may be believed that the extra 1000 people (short term) is a sensible diversion away from the Philippines call centre problems. (Due to lockdown of Manila. Hard to work from home as a call centre agent in Manila. You need fibre to the building for reliability in Manila - it costs a bomb but the only way to operate.).
What do you think Benson...is it possible you have overreacted to the situation?
TLS Price at posting:
$3.07 Sentiment: Hold Disclosure: Held
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