Telstra surprised many in 2018 by announcing a large restructure that could result in up to 9500 jobs, almost a third of Telstra's workforce, being cut across the country in the subsequent three years. The Communication Workers Union immediately urged the federal government to become proactive in limiting the losses or at least supporting Telstra workers and their families involved in the redundancies. The union's view is that Telstra was once a publicly controlled asset and even today is a central infrastructure service for emergency calls and for connecting remote communities across the country. Telstra's view, as an independent telecommunications company in a fast-changing, global sector, is that efficiencies with available and emerging technology need to be harnessed. The reality is that information technology can consolidate large repeatable functions and effectively take the place of people, thereby delivering big cost savings. All of their competitors are likely to follow such approaches, so Telstra has to bite this bullet now if it is going to survive at the global level. Job losses are just one plank in a larger restructure involving structural, process and strategic changes. Product range simplification, increases in online service and more digital solutions to service problems, embedding the new 5G network, and an overarching strategy to improve customer service are among the platitudes announced with the restructure. Will the restructure deliver the benefits Telstra aims for, and will the job losses help the company to speed towards those objectives? These are the yet unanswered questions the next few years will resolve.

Question

Critically discuss the downsizing strategy in improving profitability and survival of organisations? Besides downsizing, what other change strategies organisations could adopt to succeed in turbulent environment. For each point, support discussion with appropriate examples from Pacific Island countries. [20 marks]