Canadian telecom service provider Shaw announced its second quarter 2018 fiscal results today, shedding some more light on its ‘Total Business Transformation’ (TBT) corporate restructuring, as well as its ‘Voluntary Departure Program’ (VDP) buyouts.
According to an April 12th, 2018 media release, approximately 1,200 employees plan to leave Shaw by the end of the company’s fiscal 2018 calendar.
The telecom expects VDP-related cost reductions to reach approximately $48 million in 2018.
Additionally, the company said that it expects to spend roughly $417 million CAD in restructuring, mainly as a result of severance and employee costs, as well as “additional costs directly associated with the TBT initiative.”
Shaw also said that it doesn’t expect its TBT costs to exceed $450 million.
“We remain confident through the next 18 months, which has been extended to 24 months in some circumstances, we can manage the transition with limited disruption in our day-to-day operations,” said Brad Shaw, in an investor’s call discussing the company’s Q2 2018 results.
The company added that it expects to save approximately $215 million as a result of the TBT, which will be “fully realized” by the company’s fiscal 2020 calendar.
“TBT is absolutely necessary for Shaw to meet customer expectations,” said Shaw, during the investors’ call.
“The vast majority of roles can be addressed through modern service and automation.”
Shaw first reported that it would offer buyouts to 6,500 employees in January 2018. The company initially thought that 10 percent would accept the buyout, but approximately 3,300 employees reportedly took a buyout.
A Shaw employee told MobileSyrup that the atmosphere at the company was “grim”.
During the investors’ call, however, Shaw said that “employee morale remains high as change creates opportunity.”
“Employees that choose to stay are totally excited about the contribution that they’re going to make to change.”