Canadian services provider Rogers Communications Inc. is preparing to fire several hundred workers as part of the company’s cost-cutting strategy brought about as the firm faces fierce competition in the wireless, cable and internet sectors.
According to the Financial Post:
“New chief financial officer Tony Staffieri is undertaking a review of the company’s multibillion-dollar capital structure in the hope he can trim from the $5-billion a year Rogers spends on contracts with handset makers like Apple Inc. and Research In Motion, Ltd., wireless-equipment providers such as Ericsson AB, and dozens of smaller partners.”
The need to cut costs was verified by spokeswoman Patricia Trott who stated:
“We’re managing costs in areas where it makes sense and continuing to invest in the future.”
Rogers is leaving no stone uncovered as the company examines 375 directors, vice-presidents and high-level sales associates, all of whom have the chance to lose their jobs.
News of more layoffs at the company comes after the organization fired 300 workers in March.
Rogers is being forced to cut jobs as Bell Canada Inc. continues to make inroads against Rogers’ television and internet services. According to the company 27,000 customers were lost last quarter while Bell added 18,000 customers.
Despite shrinking TV and Internet sales Rogers still maintains Canada’s largest mobile presence with 9.3 million subscribers.
It’s still not clear when Rogers Communications will fire 300 more workers or from what sectors of the business those workers will come from.
Are you surprised by the company’s turn in fortunes over the last several years?