Australian telco Telstra is set to cut hundreds of jobs.

After initial reports from The Sydney Morning Herald earlier in the week, the carrier confirmed that 550 jobs would be lost.

However, Telstra came out to deny reports that artificial intelligence (AI) was the reason for the jobs being axed.

The carrier noted on July 9 to its employees that around 550 roles will be lost across the organization.

“These changes are largely driven by the ongoing reset of our Telstra Enterprise business, as well as improvements to the structure and processes of other teams across our organization, to reduce complexity, create efficiencies, and respond to changing customer needs," said Telstra in a statement last week.

Currently, Telstra employs around 31,000 people across the world.

Telstra's CEO, Vicki Brady, previously noted in May that the company was keen to "embrace AI."

She made the comments during Telstra's announcement of its ‘Connected Future 30’ strategy, which sets out to significantly boost Telstra's usage of AI by the end of the coming decade.

In January, the carrier announced a joint venture (JV) with Accenture to speed up the company's data and AI roadmap. The JV aims to support Telstra's modernization of its AI and data platforms.