Bell Canada cutting management staff by 2,500
Changes 'absolutely necessary,' says president and CEO
Last Updated: Monday, July 28, 2008 | 9:34 AM ET
CBC News
Bell Canada will cut about 2,500 management jobs to reduce costs, the telecommunications company's parent firm, BCE Inc., announced Monday.
The cuts amount to about 15 per cent of Bell Canada's management jobs, or about six per cent of the company's total workforce.
The cuts include the 30 per cent staff reduction announced on July 11.
The job cuts, together with earlier cost-lowering moves, are expected to help Bell save about $300 million annually.
"It is always difficult to see colleagues depart, but these changes are absolutely necessary," George Cope, the president and CEO of BCE and Bell Canada, said in a release.
"We are moving forward with a streamlined management structure that brings everyone at Bell closer to the customer and allows us to compete more effectively. This new structure positions us as a far more efficient and cost-effective operator in the intensely competitive Canadian communications marketplace."
The company said non-management front-line service positions are not affected by the change.
In early July, BCE reached a final deal to be acquired by a group headed by the Ontario Teachers' Pension Plan in a $51.7-billion buyout.
BCE shares gained five cents, finishing at $38.95 on the TSX on Monday.
