Australian operator Telstra reportedly confirmed a report it proposes to cut 550 jobs across its business, but claimed AI adoption was not a reason for the move.

Australian Broadcasting Corporation (ABC) reported the company explained in a statement the changes are largely driven by an ongoing reset “of our Telstra Enterprise division” and what it described as “improvements” to “the structure and processes of other teams across our organisation to reduce complexity, create efficiencies and respond to changing customer needs”.

The Sydney Morning Herald broke news of the expected job cuts earlier this week.

ABC reported at the end of its statement, Telstra added: “The changes proposed to our team are not a result of our adoption of AI.”

The 550 jobs represent less than 2 per cent of the company’s total workforce of 31,876 as of the end of 2024.

Telstra unveiled a five-year strategy in May, vowing to step up focus on efficiency and competitiveness across its business. It then announced 1,900 job cuts as part of a shake-up of its enterprise business and cost-cutting measures across network operations and services.

The operator reportedly added in its statement it would consult with staff about the changes and if they go ahead there could be an opportunity to help them find another role at Telstra.