Telstra, Accenture to cut 209 jobs for data and AI venture

The joint data and AI venture between Telstra and Accenture is set to axe 209 positions, with the intention of hiring a smaller number of offshore staff to replace only some of those roles.

Editor’s note: This story first appeared on HR Leader’s sister brand, AI Daily.

The joint venture was launched in January last year and will last seven years, with the intention of building AI tools, uplifting skill sets, and helping Telstra modernise its AI and data platforms.

At the time, Telstra told its internal “core data and AI” staffers that they could be moved to the joint venture when it formed, but said that over time, it would “become more efficient and streamlined as the acceleration of Telstra’s data and AI roadmap is delivered”.

As first reported by iTnews, a spokesperson for the joint venture has confirmed that a proposal for workforce changes had been issued to the joint venture team.

“We spoke with the data and AI joint venture (JV) team about proposed changes to our workforce, including reducing roles where work is no longer needed, and moving some work to the JV team in India,” the spokesperson told iTnews.

“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.

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

According to a source with knowledge of the job restructure, speaking with iTnews, the joint venture had so far underperformed in certain areas, including the introduction of AI-powered experiences and ensuring that new data platforms had the same capabilities as existing ones that were to be decommissioned.

However, a spokesperson for the joint venture said this was not the case and that the venture had achieved “strong progress”.

They added that, so far, they had made steps towards the goal, “including decommissioning legacy platforms, establishing responsible AI governance, streamlining data architecture, and opening access to global innovation via [a] Silicon Valley hub,” they told iTnews.

The spokesperson said they had begun a consultation phase with the staff impacted by the cuts, but did not disclose a timeline for the consultation.

“If the changes proceed, the JV will support affected team members to find redeployment opportunities either at Telstra or at Accenture where possible, or will provide access to our career transition program and redundancy benefits,” they said.