Telus to Cut 1,500 Jobs as Wireless Carrier Seeks Cost Savingsby
A `notable number' are voluntary departures, early retirements
Reductions will help save C$100 million to C$125 million
Telus Corp., one of Canada’s biggest telecommunications companies, is cutting 1,500 jobs to help reduce costs.
Getting rid of the full-time positions will save C$100 million ($76 million) to C$125 million a year, the Vancouver-based company said in its third-quarter earnings statement.
Telus is spending billions to build out its network and buy new licenses for wireless airwaves as it works to keep up the quality of its networks compared to rivals BCE Inc. and Rogers Communications Inc. The company said it plans to spend C$4.5 billion on capital spending and spectrum auctions this year.
The job cuts would represent about 3 percent of the workforce of 43,700 as of the end of 2014. A “notable number” of the reductions will be voluntary departures and early retirements, Telus said in the statement.
“These are very difficult decisions to make but a necessary element of aligning our organization with the growth, customer service and capital allocation activities we are implementing,” said Chief Executive Officer Darren Entwistle.
The company reported profit of 66 Canadian cents a share, beating an average analyst estimate of 64 cents. Sales were $3.2 billion, up 4.2 percent from the same period last year, and the company raised its quarterly dividend to 44 Canadian cents a share.
Still, Telus added fewer new wireless contract customers than analysts had expected, reporting 69,000 new users compared with an average estimate of 86,600.