Most of the job losses will occur in Telstra Operations - the business unit that handles the construction and operation of fixed-line networks - as well as customer services. Union anger as 1100 workers face the axe. Credit:Getty Images Telstra chief operations officer Brendon Riley said on Wednesday the cuts would allow the company to grow other areas of its business. ''We are seeing reductions of roles in declining businesses due to evolving technologies,'' he said. But the decision angered unions, which criticised the company for putting shareholders before workers and cutting domestic jobs while expanding overseas. Communications Electrical Plumbing Union national secretary Shane Murphy said: ''This is one of the most profitable companies in Australia and yet it continues to move jobs offshore.''

Telstra has reported a net profit of more than $3 billion each year for the past five years and is favoured by investors for its large dividend payouts. Illustration: Ron Tandberg. ''This initial announcement is just the tip of the iceberg,'' Mr Murphy said. He expected more cuts to be announced between now and the end of the financial year. But Mr Riley said the telco planned to increase jobs in its overseas divisions, but this did not mean moving jobs overseas. ''Certainly we are looking to build our capabilities in Asia, that's something that we're working on,'' he said. ''[But] if you look at the three things we've announced … none of them are going overseas.''

Mr Riley said he could not rule out further cuts to other divisions before the end of the year. ''[Telstra chief executive] David [Thodey] is on record as saying we need to continue to change the shape of Telstra, and it's probably going to get smaller every year,'' he said. The current cuts are expected to occur between now and June. The Community and Public Sector Union, which also represents affected workers, said the cuts were drastic. ''Telstra has been making staff redundant every week, almost every day,'' union organiser Teresa Davidson said. ''Most of the jobs that have gone so far have gone offshore.''

Fairfax Media reported in May that Telstra's restructure would mean a complete reorganisation, with its operations sorted into five groups, three of which - networks, information technology solutions and customer services delivery - would be new. The communications union is to meet Telstra on Thursday to discuss the cuts. Mr Murphy said the job cuts came at a time when workers were needed to meet the demands of the NBN rollout. ''It is a knee-jerk reaction considering all the work Telstra has before it with NBN, regardless of which path [Communications Minister] Mr Turnbull chooses to take with the broadband network,'' he said. ''Telstra has a major role to play and it is now shedding some of the most skilled employees.''