Telstra restructures with 950 job losses

By By Darren Davidson | 28 October 2010
 
Telstra chief marketing officer, Kate McKenzie.

Telstra is restructuring the company into a "simpler" business model and handing more power to chief marketing officer Kate McKenzie as it prepares to make 950 redundancies.

The changes come amid a shift towards what the telco describes as a "simpler" structure away from its unwieldy structure, with changes that will give more control to local managers, create an Innovation Office, "simplify" sales and marketing channels, and reform key internal processes.

McKenzie informed the marketing department of the changes this morning, which include the establishment of a dedicated Innovation Office in the marketing department, and a standalone media and content team in marketing, which includes the Voice and Broadband units. The Innovation Office will be led by Hugh Bradlow, who assumes the role of head of the Innovation Office.

She said: "There will be several changes made to the Chief Marketing Office that strengthen our role as the leaders of Innovation and Strategy for Telstra and increase our accountabilities for product revenues and the end to end customer experience."

There are no changes to leaders in the Marketing Communications Group, including the roles performed by director of creativity, innovation, brand strategy and customer experience, Mark Collis, director of media and agency services management, John Turner, and director of business unit marketing & communication, Inese Kingsmill, who starts on 8 November.

McKenzie said: "The Innovation office will be responsible for breakthrough innovation with a strong commercial focus, reflecting Telstra's shift to become a sales and marketing led organisation.

"The move to the CMO will ensure technical research is directly informed by research into customer preferences and behaviour, bringing innovation closer to customer and commercial outcomes.

"Media and Content will now be a stand-alone portfolio allowing this group to focus on the growth of this portfolio. The Media Delivery & Technology division in Telstra Media will soon move across the Chief Operating Office."

Telstra is reducing its workforce by 950, with roles in executive and middle-management under threat.

Chief Executive Officer David Thodey said: "Telstra will now be organised as a sales and marketing company that is faster to market and more focused on our customers,

“Telstra’s simpler new operating model will shift decision-making from head office to local managers and allow our frontline employees to get results more quickly, with fewer steps and approvals."

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