EXCLUSIVE: Telstra’s international arm is proposing to cut around 160 roles as it seeks to reduce “manual steps” in its work by implementing “re-engineered processes, automation, analytics and AI” under a new agreement with consultancy giant Accenture.

Roary Stasko, the American CEO of Telstra International, detailed the proposed changes to staff on Thursday (AEDT), according to internal messages seen by Information Age.

The proposal would cut 128 internal roles and 35 contractor positions in Telstra International’s Customer Success team through a five-year partnership with Accenture – under which 10 new roles would supposedly be created.

“Certain work currently carried out within Telstra International would transition to Accenture, and some would no longer be required in the proposed new operating model,” Stasko told staff.

Eight Australian-based roles have been proposed for redundancy within Telstra International, Information Age understands.

If the proposal goes ahead following consultation with staff, some of the division’s technical support employees in Malaysia would be offered roles with Accenture, according to the internal announcement.

“These are not decisions we take lightly – the proposed changes affect colleagues we work with every day, many of whom have contributed to International over many years,” Stasko told staff.

“Our focus is now on supporting our people through consultation.

“This is a critical part of what happens next, and we are committed to listening and answering questions and supporting people through this process.”

A Telstra spokesperson told Information Age the company is “not proposing that any roles be replaced by AI as part of these changes”.

“As we continue modernising our systems and tools – including through this proposed strategic partnership – newer technologies like AI will naturally play a bigger role in helping deliver faster, more intuitive experiences for customers,” they said.

“... Impacted employees will be offered redeployment opportunities within Telstra and Accenture, however if that’s not possible and people leave Telstra International they’ll have access to leading retrenchment benefits and a range of support services.”

Telstra International has more than 3,000 employees globally and operates various telecommunications and digital infrastructure, including subsea internet cables and more than 600 data centres.

‘This is not traditional outsourcing’

The proposed changes at Telstra International would see the division benefit from “Accenture’s experience in simplifying and modernizing complex operations”, Stasko suggested to staff.

Accenture already has a $700 million AI-focused joint venture with Telstra that the two companies announced in January 2025, which has since seen job cuts of its own.

Describing Telstra International’s new partnership with Accenture, Stasko told his colleagues, “This is not traditional outsourcing.”

Instead, he described it as “a transformation partnership”.

“The aim is to strengthen how things work behind the scenes, while we keep clear ownership, accountability, and governance,” he said.

Stasko argued Accenture’s expertise was needed due to “complex and inefficient processes” inside Telstra International, including “manual workarounds and operational backlogs” which had slowed its work and, in some cases, extended the time taken to fix faults.

“We’ve looked carefully at what it would take to fix this on our own,” he said.

“The reality is that transforming these processes internally would take years, delaying the improvements our customers and people need now.”

Stasko argued the changes would put Telstra International “in a stronger position to simplify how we work, cut through complexity and stay competitive”.

“The proposed transformation is intended to accelerate the modernization of our delivery and assurance operations and improve the experience we provide to our customers,” he said.

International cuts just the latest at Telstra

Telstra cut more than 1,000 jobs in the second half of 2025 while recording a $1.2 billion profit, with hundreds more cuts expected in 2026.

Information Age reported in February on Telstra’s plans to cut more than 600 Telstra Enterprise staff in the current financial year, as well as around 200 jobs from its joint venture with Accenture – in which some roles were to be offshored to India.

Telstra would not confirm how many of the proposed cuts within its Accenture joint venture have been carried out following consultation, but Information Age understands many roles have been lost.

“Those impacted employees are currently in the redeployment window for opportunities within Telstra and Accenture and these have yet to be finalised,” the spokesperson said.

“Telstra has also identified additional redeployment opportunities with an Australian industry partner and this has been communicated to our people and unions.”

Telstra previously signed a deal with Indian ICT consultancy giant Infosys in 2025, which ceded control of roughly 650 workers from Telstra’s services arm, Versent Group.

In July 2025, the telco confirmed previous plans to cut around 550 roles across its business as part of an “ongoing reset” of Telstra Enterprise – which had already seen many roles cut in its consulting arm, Telstra Purple.

Several Australian technology companies have recently announced layoffs while increasing their use of AI and automation, including the likes of Atlassian, Afterpay, WiseTech, and the Commonwealth Bank.