Telecom giant Bell Canada has announced a major restructuring this week, slashing 9% of its workforce (around 4,800 jobs) in a bid to control costs. The company cited declining revenue from traditional phone and news businesses, along with “unsupportive” government and regulatory decisions as key factors.
This marks Bell’s second major shakeup in a year, following a 1,300-worker cut in 2023.CEO Mirko Bibic blamed the federal government for failing to support Canadian telecom companies against global tech giants and criticized a recent ruling by the Canadian Radio-television and Telecommunications Commission (CRTC) that forces Bell to share infrastructure with competitors.
What CEO Mirko Bibic blamed the job cuts on
Bibic criticized the Canada’s federal government for not creating a level playing field with global tech giants and expressed concern over the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision requiring Bell to share its infrastructure with competitors. The CRTC justified this decision by citing limited competition in the high-speed internet market. Bell retaliated by reducing capital expenditure by $1 billion.
Also, traditional phone and news operations are losing ground, impacting revenue.
Impact of job cuts
The job cuts are expected to save Bell Canada C$150-$200 million annually, while also drawing criticism from Canadian politicians. Heritage Minister Pascale St-Onge expressed disappointment and urged Bell to contribute more to the industry. British Columbia Premier David Eby took a harsher stance, calling Bell and similar companies “corporate vampires” and urging the federal government to intervene.
Despite the job cuts, Bell reported an increase in operating revenue for the fourth quarter, but profits fell significantly. Bibic attributed the decline to shrinking advertising revenue and losses in the news division. Additionally, the company announced a C$1 billion cut in capital spending.
The news comes amid broader debates in Canada regarding the future of media and technology. The Online News Act, which forces tech giants to compensate news publishers, has already led to a deal with Google but resulted in Facebook blocking news in the country.
This marks Bell’s second major shakeup in a year, following a 1,300-worker cut in 2023.CEO Mirko Bibic blamed the federal government for failing to support Canadian telecom companies against global tech giants and criticized a recent ruling by the Canadian Radio-television and Telecommunications Commission (CRTC) that forces Bell to share infrastructure with competitors.
What CEO Mirko Bibic blamed the job cuts on
Bibic criticized the Canada’s federal government for not creating a level playing field with global tech giants and expressed concern over the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision requiring Bell to share its infrastructure with competitors. The CRTC justified this decision by citing limited competition in the high-speed internet market. Bell retaliated by reducing capital expenditure by $1 billion.
Also, traditional phone and news operations are losing ground, impacting revenue.
Impact of job cuts
The job cuts are expected to save Bell Canada C$150-$200 million annually, while also drawing criticism from Canadian politicians. Heritage Minister Pascale St-Onge expressed disappointment and urged Bell to contribute more to the industry. British Columbia Premier David Eby took a harsher stance, calling Bell and similar companies “corporate vampires” and urging the federal government to intervene.
Despite the job cuts, Bell reported an increase in operating revenue for the fourth quarter, but profits fell significantly. Bibic attributed the decline to shrinking advertising revenue and losses in the news division. Additionally, the company announced a C$1 billion cut in capital spending.
The news comes amid broader debates in Canada regarding the future of media and technology. The Online News Act, which forces tech giants to compensate news publishers, has already led to a deal with Google but resulted in Facebook blocking news in the country.
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