VANCOUVER – Telus Corp., one of Canada’s leading telecommunications companies, has announced a significant layoff of 6,000 employees. The decision was made in response to the evolving regulatory, competitive, and macroeconomic environment, as stated by Darren Entwistle, the company’s President, and Chief Executive.
In a news release, Entwistle expressed the difficulty of the decision and emphasized that the cuts were part of a broader efficiency and effectiveness initiative across Telus. The company is undergoing rapid transformation to meet the changing demands of its customers and the industry.
To mitigate the impact of the layoff, Telus is also offering early retirement and voluntary departure packages to affected employees. At the end of the last year, Telus had a workforce of approximately 108,500 employees, according to financial markets data firm Refinitiv.
The layoff announcement coincided with the release of the company’s second-quarter financial results, which revealed a sharp decline in net income. Telus reported a nearly 61 percent drop in net income, reaching $196 million for the quarter ended June 30, compared to 34 cents per share in the same period last year.
Despite the financial challenges, Entwistle positioned the company’s strategy of investing in broadband networks, digitalizing operations, and streamlining costs as “winning.” He emphasized Telus’s resilience and ability to embrace change, which are central to the company’s culture and will contribute to its future success.
Telus’s layoff decision follows a similar trend in the Canadian telecommunications industry. BCE Inc., another major telecom company, recently announced its plans to cut 1,300 positions, including six percent of its media arm. BCE attributed the job cuts to a challenging public policy and regulatory environment, citing concerns about the impact of specific bills, such as Bill C-11 (Online Streaming Act) and Bill C-18 (Online News Act).
The Online Streaming Act aims to regulate streaming platforms like Netflix and Disney+ and requires them to contribute to the creation and promotion of Canadian content. Meanwhile, the Online News Act mandates Google and Meta to pay news publishers for content linked on their platforms.
Similarly, Rogers Communications Inc. has also taken steps to reevaluate its workforce. The company offered voluntary departure packages as part of its efforts to eliminate duplication following the acquisition of Shaw Communications Inc.
While telecommunications companies in Canada are facing challenges, the industry as a whole is striving to adapt to the changing landscape and remain competitive. The adjustments are necessary to navigate regulatory changes, rising interest rates, and persistent inflation pressures.