Telus to lay off 6,000 workers as net income drops 61%

financialpost.com:

VANCOUVER — Telus Corp. says it is cutting 6,000 jobs.

The cuts were made with “a very heavy heart” and prompted by the “evolving regulatory, competitive and macroeconomic environment,” Darren Entwistle, the company’s chief executive, said.

“Against the backdrop of rapid transformation in our industry and the ways in which our customers want to engage with us, today we are announcing a significant investment in an extensive efficiency and effectiveness initiative across Telus,” he said in a news release.

He added that Telus will also offer early retirement and voluntary departure packages.

The company had 108,500 workers at the end of last year, financial markets data firm Refinitiv said.

Telus’ plans to reduce its workforce were announced at the same time as the company revealed its second-quarter net income fell almost 61 per cent from the same period last year to $196 million.

The company’s net income amounted to 14 cents per share for the quarter ended June 30 compared with 34 cents per share in the same quarter a year earlier.

Yet Entwistle positioned the company’s strategy of building out broadband networks, digitizing operations and streamlining costs 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 said.

His cut comes as telecommunications businesses are striving to streamline their operations as they grapple with regulatory action amid soaring interest rates and stubbornly high inflation.

Fellow telecommunications giant BCE Inc. said in mid-June that it would slash 1,300 positions, including six per cent of its media arm. It blamed the job cuts on a challenging public