Telstra is to axe 422 jobs at its customer service and call centre operations.
Telstra on Tuesday said it would close its customer service centres in Lismore in NSW and Townsville in Queensland.
It will also consolidate some service delivery testing functions in Melbourne and Sydney into other call centres operated by Telstra and its partners.
"The proposed changes would, if implemented, result in 422 Telstra roles and a number of agency roles becoming redundant," Telstra said in a statement.
Telstra said if the proposed job cuts go ahead, 180 roles would be made redundant at its Melbourne and Sydney service contact centres.
Another 126 roles in Townsville and 116 in Lismore will go.
Telstra blamed a 20 per cent fall in call volumes in the past 12 months for forcing it to cut jobs.
Further falls were expected in coming years as more customers switched from using phone services to the internet and other services.
"In fact 30 per cent of our customers now use online transactions," Telstra said.
"As a result, we believe we need fewer contact centres in the future."
Telstra said staff affected by the cuts would be invited to apply for other roles within the telecommunications provider.