Telstra will sack 650 staff in Melbourne and Sydney from its struggling Sensis business, according to reports.
Telstra management were set to deliver the news to staff in a series of meetings from 10am this morning, the Herald Sun reports.
Do you have information that could lead to a news story on ninemsn Finance? Let us know by sending an email to firstname.lastname@example.org
The telco's Sensis arm has 2500 staff working across the Yellow Pages, White Pages and Trading Post businesses, which have come under threat with the collapse of print advertising.
Community and Public Sector Union spokeswoman Teresa Davison said the union will meet with Sensis at 3pm to discuss what she dubbed a "short-sighted call".
"Like all large businesses they look at their massive profits dropping," she said.
"If a $1 billion profit drops to $900 million their response is to sack staff, even though they are still making a huge profit."
Sensis appointed digital media executive Jeremy Birt as its new executive general manager on January 30, with a brief to oversee the company's print and digital operations.
The company also acquired True Local in January and indicated the online directory would be added to its Yellow Pages network.
The deal was subject to ratification by the Australian Competition and Consumer Commission.
Prime Minister Julia Gillard said it was "dreadful news".
"It's always incredibly tough when someone loses a job," she told Adelaide Radio 5AA.
"That's why we do so much to try and make sure there are job opportunities in our nation, because you need a job to build a life for you and your family."
Comment is being sought from Telstra.