Telstra to Cut More than 200 Jobs Amid AI Push

Why It Matters

The move highlights telcos’ reliance on AI to trim costs and shift talent offshore, accelerating digital transformation. It also signals mounting pressure on domestic AI expertise as operators prioritize global capabilities.

Key Takeaways

• 209 roles cut in Telstra‑Accenture AI JV
• Some positions relocated to India for cost efficiency
• JV valued at AU$700 million, 60% Accenture ownership
• Cuts part of Telstra’s broader 2,800‑job reduction plan
• Aim: faster AI roadmap, improved customer experience

Pulse Analysis

Telstra’s decision to slash over 200 jobs at its AI joint venture with Accenture reflects a broader industry pivot toward artificial intelligence as a cost‑saving engine. The partnership, launched last year with a AU$700 million investment, combines Telstra’s telecom data assets with Accenture’s global AI expertise. By consolidating development work in Accenture’s Indian hub, the carrier hopes to accelerate its AI roadmap, modernize data platforms, and embed responsible AI practices more quickly than a purely domestic effort would allow.

The workforce reduction underscores a strategic shift in talent allocation. While the layoffs affect specialists in Australia, relocating tasks to India leverages lower labor costs and a deep pool of AI engineers, promising immediate efficiency gains. However, this move also raises concerns about domestic skill erosion and the long‑term sustainability of local AI ecosystems. Telstra’s leadership frames the cuts as a necessary step to deliver better customer experiences, yet the broader impact on employee morale and regional expertise remains a critical consideration.

Across the telecom sector, operators are increasingly using AI to automate network management, personalize services, and drive new revenue streams. Telstra’s restructuring mirrors actions by peers worldwide, who are trimming headcount while investing heavily in AI platforms to stay competitive against over‑the‑top players and emerging 5G services. As AI becomes integral to service delivery, firms that can balance cost efficiencies with responsible AI deployment are likely to capture market share, making Telstra’s latest move a bellwether for the industry’s evolving talent and technology strategies.

Telstra to cut more than 200 jobs amid AI push

The cuts will impact Telstra's AI JV with Accenture

February 10, 2026 – By Paul Lipscombe

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Australian telco Telstra plans to cut more than 200 jobs at the carrier's AI joint venture with Accenture.

The Guardian reports that 209 jobs will be cut due to the implementation of AI, while other roles will be moved to India.

– Telstra

Telstra formed the AU$700 million (US$495 m) joint venture with Accenture last year.

According to The Guardian, a spokesperson from the JV confirmed that the team had been notified “about proposed changes to its workforce, including reducing roles where work is no longer needed, and moving some work to the JV team in India.”

“These changes would see the JV use Accenture’s global capabilities, advanced AI expertise, and specialist hub in India to deliver Telstra’s data and AI roadmap more quickly,” said the spokesperson.

“We anticipate that over time this would result in improved cost efficiencies and bring an enhanced experience to Telstra’s customers.”

The JV is 60 % owned by Accenture and 40 % by Telstra, and will comprise specialists from Telstra and Accenture’s data and AI teams to build on Telstra’s work to create a data and AI ecosystem, modernize its data and AI platforms, and embed responsible AI by design.

Telstra's CEO Vicki Brady previously stated last year that the telco was keen to “embrace AI,” while hinting that the company would further shrink its workforce by the end of the decade.

The upcoming layoffs are the latest at the carrier, which announced plans to cut 2,800 jobs just under two years ago.