Telstra Corp. Ltd. will lay off about 25% of its contractors in the next two years, Reuters reported June 4, citing Telstra CEO Andy Penn's statement at an investor conference.

With the Australian telco estimated to have around 40,000 contractors, the job cuts may impact about 10,000 people.

The contractor cuts are on top of the company's plan to shed about 8,000 internal jobs, which Telstra aims to expedite.

Telstra also expects an additional A$350 million in restructuring charges in the company's upcoming financial year.