Telstra has confirmed 650 jobs are set to be axed from its struggling Sensis arm after it announced a program of structural reform in a bid to breath life into the print-based business.

The telco announced that the proposed job cuts will be sourced predominately from back-of-house roles, including 391 fulfilment and customer care positions that will be outsourced.

Telstra’s Managing Director, John Allan, said he would immediately begin consultation with staff and unions as the company transitions from print to digital media.

Mr Allan said the proposed restructuring of the business would see a new digital Customer Management Centre with 50 new roles.

“Until now we have been operating with an outdated print-based model – this is no longer sustainable for us. As we have made clear in the past, we will continue to produce Yellow and White Pages books to meet the needs of customers and advertisers who rely on the printed directories, but our future is online and mobile where the vast majority of search and directory business takes place,” Mr Allan said.

“Already, more than 60% of our customers now are advertising online and in mobile apps, while our White and Yellow Pages digital services received 18.4m visits in January 2013.

“We need to simplify our operation and invest in areas that make us more efficient, and meet our customers’ growing demand for online and mobile services.

Key changes outlined by Mr Allan include.

  • Establishment of a new  digital Customer Management Centre
  • Improved IT capabilities to strengthen digital innovation and delivery capabilities
  • Improved marketing and go-to-market processes, with reduced duplication.
  • Restructuring the Yellow Pages® sales operating model
  • Outsourcing certain back office functions to deliver around the clock support for the White and Yellow Pages customer care and fulfilment capabilities.
  • Reduced duplication of senior and middle management roles