Sensis has slashed 650 jobs just weeks after parent company Telstra announced record $1.6m profits.
The number is more than expected, with boss John Allan (pictured) saying they were needed to make the model for the company “more sustainable”, as it looks to move away from print into digital directories.
Whilst overall Tesltra profits were up, the half-yearly report suggested the Sensis unit was down around 12.5% on last year.
The company is primarily known for its Yellow and White Pages directories, which have been increasingly squeezed in recent years with the rise in online directories and Google.
In a statement Allan said: “We are working with our staff and the unions to provide further detail of our proposed digital transition to ensure the best support for those affected by the resulting changes.
“Until now we have been operating with an outdated print-based model – this is no longer sustainable for us.
"As we have made clear in the past, we will continue to produce Yellow and White Pages books to meet the needs of customers and advertisers who rely on the printed directories, but our future is online and mobile where the vast majority of search and directory business takes place."
As part of the restructure 391 backroom and customer service staff will be cut, with some roles outsourced, although a new digital customer management unit is being set up, creating around 50 roles.
It is understood the company has around 3,500 employees currently.