TheCommunicationsWorkersUnion, which represents staff at Australia's largest telco, says the cuts will impact Telstra's ability to service clients, particularly those in regional areas.

National president ShaneMurphysays the decision will devastatethousandsofAustralianfamilies and compromise the telco's ability to deliver services.

"Inanindustrywhichisbooming,Telstra hasclearlychosentoprioritiseshorttermprofits tokeepshareholdershappy," he said in a statement on Wednesday.

"Thisisarecipeforreducedservices,withTelstra'shighlyskilledworkforceofemployees andcontractorsreplacedbycasualsandpiece-workers."

Mr Murphy said the jobs purge represented oneofthelargest ever undertaken inAustraliancorporatehistory and was a low-pointsince Telstra's privatisation 20yearsago.

"(Telstra) hasconsistently takenthelowroadofcuttingjobsratherthaninvestinginvitalcommunityinfrastructure," he said.

"OnbehalfofTelstraworkersandTelstracustomersIamcallingon chief executive AndyPenn to reconsiderthisdrasticaction."

Australian Associated Press