The job cuts represent roughly 5.5% of the company’s 108,500 employees 

Canadian telco Telus has announced that it will cut 6,000 jobs to free up cash flow and remain competitive, the company revealed on Friday.  

According to reports, roughly 4,000 of the jobs will be cut from Telus itself, with a further  2,000 at Telus International.  

In an announcement, company President and CEO Darren Entwistle said were prompted by the “evolving regulatory, competitive and macroeconomic environment.” 

“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 explained. 

According to the firm, the company restructuring will cost Telus C$475 million ($356 million) this year but will result in future annual savings of over C$325 million ($243 million). 

The restructuring news comes shortly after Telus revealed that its net income for this year’s second quarter had fallen by nearly 61% compared to last year, down to C$196 million ($146 million). 

As well as job cuts, Telus said it will implement additional cost-saving measures, such as developing more automated and AI-enabled systems to streamline operations. 

Telus are not alone in their restructuring strategies, as other Canadian telcos have also made sizeable job cuts this year. BCE Inc, parent company of network operator Bell Canada, announced in June that it will cut 1,300 jobs to cut costs. Meanwhile, Rogers Communications said earlier this year that it will make job cuts as a result of its merger with Shaw, which was given the green light in April this year. Exactly how many jobs are expected to get the axe is currently unclear.  

In fact, similar job cuts are taking place all over the world in the telecoms sector, with pressures on the global economy and rising inflation taking their toll on operators’ bottom lines. In the UK, for example, BT has announced its intention to reduce its headcount by around 55,000 – around 42% of its global workforce – by 2030, suggesting that greater use of AI will help absorb many of these roles. Similarly, Vodafone has said it will cut 11,000 jobs over the next three years in an effort to accelerate growth. 

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