Shaw cutting about 500 jobs in restructuring

Shaw Communications is cutting about 500 jobs as part of a restructuring.

Shaw Communications is cutting about 500 jobs as part of a restructuring.

Shaw president Peter Bissonnette said Wednesday the move will eliminate jobs across Western Canada, including a large number of managers and supervisors, as the company consolidates 18 operating regions into seven.

“The overheads associated with those regions have been reduced,” said Bissonnette, who added that the cuts include about 150 managers and supervisors. Shaw has more than 13,000 employees.

Among the operations affected will be a call centre in Saskatoon that will be closed.

Bissonnette said the company has grown quickly in recent years in the internet and telephone segments of its business.

“We’ve looked at that and said the cost effectiveness of our company is really important and we need to start really looking at operating income and the kinds of overhead that we acquired in that growth,” he said.

The cuts will not affect the company’s recently acquired Global TV assets.

“They went through a large restructuring even before we acquired them,” said Bissonnette.

In January, the company reported a quarterly profit of $20.3 million or four cents per share for the quarter ended Nov. 30 compared with earnings of $114.2 million or 26 cents per share a year ago.

Revenue in what was the company’s first quarter of its 2011 financial year totalled $1.08 billion, up from $905.9 million.

The quarterly results included a charge of $139 million related to new programming, digital transmission towers and other requirements of the CRTC decision approving Shaw’s acquisition of the Canwest assets.

Shaw also recorded $58 million in acquisition, integration and restructuring costs in the quarter.

Shaw has been battling rival Telus Corp.’s foray into its core TV business. The Vancouver-based phone company offers land-line and satellite TV services to a customer base that largely overlaps Shaw’s.

Media Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!