Rogers Communications will cut between 4,000 to 5,000 jobs if cabinet approves its buyout of rival Shaw Communications, a Conservative MP yesterday told the House of Commons industry committee. MP Rick Perkins (South Shore-St. Margarets, NS) said he was told of massive layoffs by company insiders..“Successful acquisitions obviously require job cuts,” said Perkins. “They generally don’t involve job increases. Rogers told the Competition Tribunal that it will realize efficiencies through job cuts in most areas of both companies.”.“Speaking with your company insiders I’m told Rogers will actually cut 4,000 to 5,000 jobs in the combined entity,” Perkins told Rogers executives. “Are you going to cut 4,000 or more jobs?”.According to Blacklock's Reporter, Anthony Staffieri, CEO of Rogers Communications Inc., replied that there will be a net investment in more jobs as a result of the transaction. "What we do as a company is invest in networks.”.“My question was about job losses,” replied Perkins: “Are you going to cut thousands of jobs in this merger?”.“There will be areas that have overlap,” replied Staffieri. “We will look to redeploy resources in areas that are growing. We are a net growth company and we see more opportunity for employment throughout the country.”.The industry committee has conducted hearings on the proposed buyout of Shaw since it was first announced by Rogers on March 16, 2021. Perkins yesterday noted that Lobbyist Registry records show Rogers lobbyists held 70 meetings at the Department of Industry, including meetings with Minister Françoise-Philippe Champagne last year on January 17, July 8, July 11 and September 28..“Will you table your executives’ minutes from those meetings with this committee?” asked MP Perkins. “There is a process to make the relevant materials public and we will follow that process,” replied Staffieri..Cabinet has final approval of the buyout under the Competition Act. No deadline for a decision has been set..“What happens if the deal isn’t approved?” asked Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.). “That’s a scary proposition,” replied Trevor English, chief financial officer for Shaw Communications Inc..“What is scary?” asked New Democrat MP Brian Masse (Windsor West, ON). “Is it going to be the (Shaw) family? Is it going to be the shareholders? Why should the public and the Minister rescue Shaw?” English replied that if the deal doesn't go ahead, they "don't have a Plan B.".MP Masse interjected: “You had some of the highest prices and profit margins, and then to suggest that wasn’t enough says a lot about the current state of the Canadian telecom industries.”
Rogers Communications will cut between 4,000 to 5,000 jobs if cabinet approves its buyout of rival Shaw Communications, a Conservative MP yesterday told the House of Commons industry committee. MP Rick Perkins (South Shore-St. Margarets, NS) said he was told of massive layoffs by company insiders..“Successful acquisitions obviously require job cuts,” said Perkins. “They generally don’t involve job increases. Rogers told the Competition Tribunal that it will realize efficiencies through job cuts in most areas of both companies.”.“Speaking with your company insiders I’m told Rogers will actually cut 4,000 to 5,000 jobs in the combined entity,” Perkins told Rogers executives. “Are you going to cut 4,000 or more jobs?”.According to Blacklock's Reporter, Anthony Staffieri, CEO of Rogers Communications Inc., replied that there will be a net investment in more jobs as a result of the transaction. "What we do as a company is invest in networks.”.“My question was about job losses,” replied Perkins: “Are you going to cut thousands of jobs in this merger?”.“There will be areas that have overlap,” replied Staffieri. “We will look to redeploy resources in areas that are growing. We are a net growth company and we see more opportunity for employment throughout the country.”.The industry committee has conducted hearings on the proposed buyout of Shaw since it was first announced by Rogers on March 16, 2021. Perkins yesterday noted that Lobbyist Registry records show Rogers lobbyists held 70 meetings at the Department of Industry, including meetings with Minister Françoise-Philippe Champagne last year on January 17, July 8, July 11 and September 28..“Will you table your executives’ minutes from those meetings with this committee?” asked MP Perkins. “There is a process to make the relevant materials public and we will follow that process,” replied Staffieri..Cabinet has final approval of the buyout under the Competition Act. No deadline for a decision has been set..“What happens if the deal isn’t approved?” asked Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.). “That’s a scary proposition,” replied Trevor English, chief financial officer for Shaw Communications Inc..“What is scary?” asked New Democrat MP Brian Masse (Windsor West, ON). “Is it going to be the (Shaw) family? Is it going to be the shareholders? Why should the public and the Minister rescue Shaw?” English replied that if the deal doesn't go ahead, they "don't have a Plan B.".MP Masse interjected: “You had some of the highest prices and profit margins, and then to suggest that wasn’t enough says a lot about the current state of the Canadian telecom industries.”
