Canada’s Telus to axe 6,000 jobs

Canadian telecom operator Telus is reducing its headcount by 6,000 across its global footprint in a bid to free upo cash and remain competitive.

“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,” said Darren Entwistle, President and CEO of Telus in the company’s Q2 2023 earnings report. “It is therefore with a very heavy heart that we are seeking to reduce 6,000 staff positions across our global footprint, representing approximately 4,000 reductions at TELUS and 2,000 at TELUS International, including offering early retirement and voluntary departure packages.”

Given the scale of this exercise, Telus expects incremental restructuring investments of up to $475 million in 2023, the chief executive said.

“The program we are announcing today will yield expected cumulative annual cost savings of more than $325 million. While this will temporarily and modestly dilute our Free Cash Flow in 2023, importantly, it will support strong Free Cash Flow expansion in the years ahead, as well as the progression of our leading, multi-year dividend growth program,” Entwistle added.

As per data from financial markets data firm Refinitiv, Telus had 108,500 workers at the end of 2022.

But Telus is not the only telco culling is headcount. Several companies, including Verizon, Cisco, Vodafone, BT, Dish, BCE, Rogers, and Swedish telecom gear maker Ericsson have announced their plans in recent months to cut jobs.