Telus Corp. announced Friday that it would be laying off 6,000 employees as part of a restructuring effort to “align our cost structure to the rapidly transforming industry.”
The layoffs will affect employees across all areas of the business, including customer service, sales, and IT. They will be complete by the end of the year and will cost the company $475 million in 2023. However, the company expects to save more than $325 million annually as a result of the restructuring.
Telus chief financial officer Doug French said that the layoffs were a “very difficult decision,” but that they were necessary to “ensure we continue to be very competitive in the market.”
French cited a number of factors for the layoffs, including increased digitization in the sector, as customers “want more self-serve” options, along with the finalization of recent mergers and acquisitions by the company.
He also said that the layoffs reflect a shift toward increased regulation in the telecommunications industry, which is making it more difficult for companies to operate profitably.
Telus is not the only telecommunications company that has announced layoffs in recent months. Fellow Canadian telecom giant BCE Inc. said in June that it would be laying off 1,300 employees, while Rogers Communications Inc. told staff in a memo last month that it would be offering voluntary departure packages.
The layoffs in the telecommunications industry are a sign of the challenges that the sector is facing, as it grapples with increased regulation, rising costs, and a competitive landscape.
The Impact of the Layoffs
The layoffs at Telus will have a significant impact on the company’s workforce. The 6,000 employees who are being laid off represent about 6% of Telus’ total workforce. The layoffs will also have a ripple effect on the economy, as the affected employees will likely spend less money and contribute less to the tax base.
The layoffs are also a sign of the changing nature of the telecommunications industry. As the industry becomes more digitized, there is less need for traditional customer service and sales roles. This is likely to lead to further layoffs in the telecommunications industry in the coming years.
The Future of the Telecommunications Industry
The telecommunications industry is facing a number of challenges, including increased regulation, rising costs, and a competitive landscape. These challenges are likely to lead to further consolidation in the industry, as smaller players are forced to merge with larger companies in order to survive.
The future of the telecommunications industry is uncertain, but it is clear that the industry is undergoing a major transformation. The layoffs at Telus are a sign of the challenges that the industry is facing, but they are also a sign of the industry’s evolution.
