Telus slashing 6,000 jobs amid drop in 2nd quarter profits

Telecommunications giant Telus says it plans to trim 6,000 jobs, citing its need to free up cash flow and remain competitive.

The cuts will involve 4,000 positions at its main Telus business and 2,000 at Telus International and will include offers of early retirement and voluntary departure packages, the Vancouver-based company said Friday.

Financial markets data firm Refinitiv says Telus had 108,500 workers at the end of last year.

The cuts were made with "a very heavy heart" and prompted by the "evolving regulatory, competitive and macroeconomic environment," said Darren Entwistle, the company's president and chief executive.

"Against the backdrop of rapid transformation in our industry and the ways in which our customers want to engage with us, today we are announcing a significant investment in an extensive efficiency and effectiveness initiative across Telus," he said in a news release.

He added that Telus will also offer early retirement and voluntary departure packages.

CEO touts 'winning' strategy

The restructuring comes amid what the company calls "resilient" second-quarter results, with mobile network revenue increasing by nearly six per cent in the three months that ended in June compared to the same period last year.

However, its second-quarter net income fell almost 61 per cent from the same period last year to $196 million.

The company's net income amounted to 14 cents per share for the quarter ending June 30 compared with 34 cents per share in the same quarter a year earlier.

Yet Entwistle positioned the company's strategy of building out broadband networks, digitizing operations and streamlining costs as "winning."

"Our resilience and ability to embrace change and continuously evolve the way we operate are cornerstones of our Telus culture and will continue to fuel our future success," he said.

This cut comes as telecommunications businesses are striving to streamline their operations as they grapple with regulatory action amid soaring interest rates and stubbornly high inflation.