Rogers Communications is to cut another 900 jobs nationwide to streamline its management and better compete against rivals Bell Canada and Telus Corp.
‘We believe these changes will enhance the customer experience, make us more nimble and efficient, further drive innovation and deliver long-term growth,’ Rogers spokeswoman Carly Suppa said Thursday about the latest cuts, which account for around 3% of the company’s 30,000-strong workforce.
Rogers did not break out the latest job cuts in terms of geography or division, and only indicated they will fall more heavily on back-room operations as the company continues to hire more ‘customer-facing’ employees, including at call centers. (Know more? Email us!)
Suppa said the layoffs were part of an ongoing reorganization that in September included merging Rogers’ cable and wireless businesses and eliminating around 20% of the vice-presidents in Rogers’ cable, wireless and corporate groups.
Rogers remains profitable, but is encountering increased headwinds, including rivals Bell Canada and Telus ending its iPhone monopoly after they recently started to market the Apple smartphones to their own customers.
Rogers used revenue from lucrative iPhone sales and usage plans to offset recent falls in radio and TV advertising revenue in the challenging economy.
In addition, Rogers and Shaw Communications have revived their own cable rivalry after the western giant acquired Hamilton,ON-based Mountain Cablevision in Rogers’ backyard.
Rogers is also continuing to diversify from its traditional cable TV business with moves that include acquiring a minority stake in Michael Eisner’s new media studio, Vuguru, and launching the ad-supported video portal Rogers OnDemand Online on Nov. 30.
‘Our industry is changing rapidly, for instance technologies are converging, and customer expectations are changing,’ Suppa said, commenting on current streamlining moves at the group.
There was more change signaled by Rogers Thursday, as the media group said it will spend $163 million to purchase 3.2 million shares of Cogeco Cable and 1.6 million shares of Cogeco.
Rogers added it had ‘no current intention of acquiring ownership of or control’ of rival Cogeco.
The stock purchases come on top of Rogers last week filing a preliminary prospectus so it can raise as much as $4 billion in new debt financing in Canada and the U.S. market.
Rogers made cuts across its divisions in late 2008 and further layoffs to its publishing staff in April.
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