According to Telstra, there has been a sharp drop in call volumes in the past year because customers are increasingly paying their bills online.
As a result, Telstra has cut 422 permanent call centre jobs across Melbourne, Sydney, Townsville and Lismore plus a further 229 outsourced jobs.
Telstra says that 30% of its clients now use online transactions instead of call centres and the telco giant expects this to increase, while call centre volumes continue to drop.
Telstra cited the need to stay competitive in a highly competitive market as a reason to cut its local call centre head count.
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The decline in call volume means that the jobs will be performed using resources at existing call centres in Perth, Townsville and offshore locations.
According to Telstra, the axed staff will be able to apply for jobs elsewhere in the organisation but it is not clear whether there are any suitable alternative positions available.
