10,000 Telstra job cuts 'very challenging'

Telstra CEO Andrew Penn says simplifying the company's business will mean job losses. (AAP)

Telstra will reduce its indirect workforce by about 10,000 over two years as part of its T22 initiative to reduce costs, CEO Andrew Penn says.

Telstra will reduce the number of contractors it employees by about 10,000 over the next two years as it tries to cut costs, chief executive Andrew Penn says.

"The human dimension of these numbers is very challenging, that is why we have an extensive program of support in place, " Mr Penn said on Tuesday.

Telstra has already reduced its indirect workforce by 5,000, to about 40,000, and will cut that by another 25 per cent over two years, Mr Penn said in a speech at Morgan Stanley.

Telstra has already announced plans to cut 8,000 direct roles at the company, but hadn't previously revealed how deep the cuts would be to the industry partners that support the telco.

"Given the uncertainty this creates I have therefore been keen to get most of the changes and most of the reductions behind us as quickly as possible," Mr Penn said.

Source AAP

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