While Telstra celebrates a staggering $1.2 billion profit, thousands of jobs vanish in the shadows—leaving us to wonder: at what cost does corporate success come?
February 19, 2026 — 8:10am
Telstra, Australia’s telecommunications giant, has unveiled a half-year profit of $1.2 billion, marking an 8.1% surge. But here’s where it gets controversial: this financial triumph is fueled by aggressive cost-cutting measures that have eliminated over 2,300 jobs in just six months. Meanwhile, the company warns that consumers may soon face higher mobile bills due to a $7.2 billion government spectrum charge—a move that’s sparking heated debates across the industry.
The financial results, released to the ASX on Thursday, reveal a 5.5% rise in underlying earnings to $4.2 billion for the period ending December 31. This growth is largely driven by robust mobile performance, with services revenue climbing 5.6%. Earnings per share jumped 11% to 9.9 cents, and the board announced a 10.5 cent interim dividend, up from 9.5 cents the previous year. Net profit also saw a healthy 9.4% increase to $1.1 billion.
Chief Executive Vicki Brady hailed the results as a testament to “strong cost control and disciplined capital management.” She highlighted the mobile division as the star performer, noting that more customers are choosing Telstra for its network reliability and value. But this is the part most people miss: the financial gains have come at a steep human cost. Total direct roles plummeted by 2,356 to 29,520, with redundancy expenses soaring by $63 million as Telstra overhauls its enterprise division. Just last week, the company proposed slashing another 442 positions, including 209 from its $700 million Accenture data and AI joint venture, with some operations being offshored to India through a new Infosys partnership.
Underlying operating expenses dropped by 2.4%, or $179 million, delivering the positive operating leverage Brady had promised investors. Telstra also tightened its full-year guidance to $8.2–8.4 billion in underlying earnings and increased its share buyback program from $1 billion to $1.25 billion, having already repurchased $637 million worth of shares at an average price of $4.90.
Looming over these results is Telstra’s escalating battle with the Australian Communications and Media Authority (ACMA) over spectrum pricing. In a pre-budget submission, the company warned that the regulator’s proposed $7.2 billion licence renewal fee—of which Telstra’s share would be $2.7 billion—could be passed on to consumers. Brady has previously stated that the additional cost would either reduce network investment or be absorbed by customers, raising questions about the long-term impact on both the company and its users.
But here’s the real question: Is it fair for consumers to bear the brunt of corporate expenses, especially when profits are soaring? And what does this mean for the future of jobs in the tech sector? Weigh in below—let’s spark a conversation that matters.
