Let’s take a quick look at the Telstra Corp Ltd [ASX:TLS] share price.
The country’s largest telecommunications provider experienced a dip in its fortunes as its stock price slid down throughout 2020.
Trading at $2.84 at time of writing, it’s possible the TLS share price has finally found some support.
What’s happening at Telstra?
Recently, Telstra rolled out their annual general meeting presentation.
In amongst all the usual corporate jargon there are some important things happening at the company.
Back in 2018, Telstra put out a plan named T22. The objective of this was to simplify operations and product sets, improve the customer experience, and reduce the cost base of the business.
Part of this plan was also a massive reduction in staff with up to 9,500 staff slated to go at the time.
The reduction of staff was expected to save the company up to $200 million alone.
The T22 plan was going along nicely until it hit a brick wall in the name of COVID-19.
The pandemic presented Telstra with a unique set of challenges. With more people than ever working from home, there was more of a demand on Telstra services and support.
In March of 2020, the company announces a halt to the layoffs of any more staff as it grappled with the pandemic and change in customer needs.
With the impact of COVID, and the change in the plans the company had in place, the stock price naturally took the hit.
Where to from here for the TLS share price?
While this year is incredibly difficult for all including Telstra, there is a silver lining.
They are still the largest telecommunications provider in the nation, with a huge customer base.
This provides the company with enough profit to pay its investors a dividend, which as of the last two payouts represents 16 cents per share. As such, Telstra has a dividend yield of 3.6% following the TLS share price slide.
Taking a look at the price action, Telstra moved down close to the support level of $2.84.
Should it continue the move down, it may go on to test the level of $2.56.
On the upside, if the buyers return to the market then the levels of $2.98 and $3.23 may become the future focus.
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