In a recent announcement, Bell Canada Enterprises (BCE), the owner of renowned telecom company Bell Canada, has expressed plans to slash 4,800 jobs, representing approximately 9% of its total workforce. The proposed layoffs are spurred by a decrease in legacy phone and news businesses, leading to the need for drastic cost-cutting measures.
The revealing of this plan was conveniently timed with the release of the company’s fourth-quarter results as well as the 2023 full-year financial performance. These steps are taken in response to an “increasingly unsupportive federal government and regulatory decisions,” as cited by the company. BCE also enumerated legacy business declines and a macroeconomic environment characterized by higher interest rates and incessant inflation as added reasons for the downsizing.
These modifications, though challenging, are necessary for adjusting to external changes, propelling our transformation, and guaranteeing the longevity and vitality of Bell,” said Mirko Bibic, the President, and CEO of BCE and Bell Canada. The company believes that these cuts will yield “in-year cost savings” ranging between CAN$150 million and $200 million, offering BCE a more advantageous position for prospective success.
Moreover, Bell Media is preparing to relinquish 45 of its radio stations, which represent over half of its total capacity. This move comes after the stations were no longer seen as viable, as disclosed by BCE’s chief legal officer, Robert Malcolmson.
In a previous statement from November 2021, Bell disclosed its plan to reduce capital expenditure by over $1 billion in the 2024–2025 fiscal year. This decision stemmed from the regulatory actions by the Canadian Radio-television and Telecommunications Commission (CRTC) that decided to liberalize the fibre networks operated by large-scale providers, consequently setting the price that operators could charge for access. This move was seen by CRTC as a means to stimulate market competition.
Indeed, the company directly attributed these cuts to the CRTC’s decision to steadfastly advocate for wholesale access at the cost of pivotal network investment.
