Telus cutting 6,000 jobs, reports 61% drop in Q2 net income

Telus Corp. says it’s reducing 6,000 jobs.

Telus, the Vancouver-based telecommunications firm, says the reduce contains 4,000 employees at its most important Telus business and one other 2,000 at Telus International.

The cuts had been made with “a very heavy heart” and prompted by the “evolving regulatory, competitive and macroeconomic environment,” Darren Entwistle, the corporate’s president and chief government, mentioned.

“Against the backdrop of fast transformation in our business and the methods during which our prospects wish to have interaction with us, immediately we’re asserting a big funding in an in depth effectivity and effectiveness initiative throughout Telus,” he mentioned in a news launch.

He added that Telus can even supply early retirement and voluntary departure packages.

The firm had 108,500 employees on the finish of final yr, monetary markets information agency Refinitiv mentioned.

BCE Inc. mentioned in June it will slash 1,300 positions

Telus’ plans to scale back its workforce had been introduced concurrently the corporate revealed its second-quarter web revenue fell virtually 61 per cent from the identical interval final yr to $196 million.

The firm’s web revenue amounted to 14 cents per share for the quarter that ended June 30, in contrast with 34 cents per share in the identical quarter a yr earlier.

Yet Entwistle positioned the corporate’s technique of constructing out broadband networks, digitizing operations and streamlining prices as “winning.”

“Our resilience and ability to embrace change and continuously evolve the way we operate are cornerstones of our Telus culture and will continue to fuel our future success,” he mentioned.

His reduce comes as telecommunications companies are striving to streamline their operations as they grapple with regulatory motion amid hovering rates of interest and stubbornly excessive inflation.

Fellow telecommunications big BCE Inc. mentioned in mid-June that it will slash 1,300 positions, together with six per cent of its media arm. It blamed the job cuts on a difficult public coverage and regulatory setting, elevating particular considerations about Bill C-11, the Online Streaming Act, and Bill C-18, the Online News Act.

The Online Streaming Act goals to control streaming platforms like Netflix and Disney+ and requires them to contribute to the creation and promotion of Canadian content material.

The Online News Act, which handed this yr, pressured Google and Meta to pay news publishers for content material they hyperlink to on their platforms.

Like Telus and Bell, Rogers Communications Inc. has additionally taken a more in-depth take a look at its workforce in latest months.

It advised employees in a memo final month that it will supply voluntary departure packages because it labored to get rid of duplication in its companies following the closure of its deal to purchase Shaw Communications Inc.

When the memo was despatched, the corporate didn’t say what number of workers can be affected by the voluntary departure program however confirmed “a small percentage” left involuntarily because the mixture with Shaw.

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