Canadian telecom operator Telus has made a significant announcement regarding its workforce in its Q2 2023 earnings report.
Darren Entwistle, President and CEO of Telus, in its earnings report revealed that the telecom operator will lay off 6,000 employees worldwide, which accounts for about six percent of its global workforce. This measure is being taken to free up cash and enhance the company’s competitiveness in the market.
Darren Entwistle acknowledged the resilience and adaptability of Telus as crucial factors in driving the company’s future success. The layoffs will affect approximately 4,000 employees at Telus and 2,000 employees at its subsidiary, Telus International. The company plans to offer early retirement and voluntary departure packages as part of the downsizing process.
To support the restructuring and cover associated costs, Telus has allocated up to $475 million in incremental restructuring investments for the year 2023. The move will result in cumulative annual cost savings of over $325 million. It will position the company for strong Free Cash Flow expansion in the coming years and support the growth of their leading, multi-year dividend program.
As of the end of 2022, Telus had a total workforce of approximately 108,500 employees, based on data from financial markets data firm Refinitiv. With this significant downsizing initiative, the company aims to optimize its operations and remain competitive in the ever-evolving telecommunications industry.
Telus has reported 12.8 percent in its operating revenues to C$4,934 million during April-June 2023 as against C$4,373 million in Q2 2022.
Telus said capital expenditures dropped 23.4 percent to $807 million in April-June 2023. Capital Expenditure target for 2023 of approximately $2.6 billion remains unchanged, Telus said. PureFibre network has reached approximately 3.1 million premises. 5G network coverage reached approximately 84 percent of Canadians.
