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Bell Canada lays off 2500 managers

updated 07:15 pm EDT, Mon July 28, 2008

Bell Canada cuts 2500

Feeling the pressure from aggressive competition, closeBell Canada is cutting 15 percent of its management workforce. Bell says it's cutting 2,500 non-union workers. Canada's largest telecommunications company is cutting its management hierarchy from 11 layers to a maximum of eight. The company is slimming down as part of a $52 billion dollar privatization plan funded by the Ontario Teachers Pension Plan and several US partners, according to the Canadian Press. Bell missed out on a chance to sell the iPhone, because it operates a CDMA wireless network which does not support Apple's mobile device. It also faces a new competitor in the wireless marketplace.

The Canadian Government announced last week that Globallive, won an auction for 2GHz wireless spectrum, paying $442 million. Globalive will join Bell, Rogers and Telus in the Canadian wireless market -- and perhaps provide relief for customers who have complained of high prices compared to US providers. Rogers is Canada's exclusive iPhone carrier, but the launch has been less than trouble free, with activation problems and complaints about pricing.

The layoffs, combined with earlier cuts in executive-level jobs, amount to 6 percent of Bell Canada's total workforce, saving about $300 million a year. That money, along with $900 million saved by cutting dividends will help reduce debt and fund upcoming investments as the company moves forward with its privatization plan. The Canadian Press says the cuts were a bit larger than expected, and that another 500 to 1000 jobs are likely to be cut as the plan proceeds.

By Electronista Staff
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  1. tgarbutt

    Fresh-Faced Recruit

    Joined: Apr 2008


    2500 "Managers" eh!

    Hmmm. If 13% managers equals 2500, then Bell had nearly 20,000 managers. In 11 layers do doubt. No wonder Canadian communications are so high! Hopefully the recent teacher buy out of Bell will fail and Bell will 'bit the dust'. Enough for the greedy management model of Canadian business.


  1. testudo

    Forum Regular

    Joined: Aug 2001



    we care because?

  1. DahlBryn

    Fresh-Faced Recruit

    Joined: Jan 2004


    Canadian Managers eh! II

    2,500 middle-management saves 300 million !
    hmm... that's $120,000 per person !

    What manager at any level have you ever met
    that's worth 120 thousand bucks a year. Yikes.

    No wonder why Bell Canada was going down the
    proverbial toilet. Hopefully the Teachers Pension
    Fund can whip their asses back into shape.

    Now, lower prices AND improve your network !

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