BCE Slashes 9% of Workforce in Biggest Restructuring in Decades ...

(Bloomberg) -- BCE Inc., Canada’s largest telecommunications firm, will cut jobs by about 9%, undertaking its largest workforce restructuring in nearly 30 years.

The Quebec-based company plans to reduce its cost base as it responds to a soft outlook for the year ahead. That means reducing the number of staff and contractors by about 4,800 positions this year, the company said in a statement Thursday. 

It’s one of the largest rounds of layoffs in corporate Canada since the economy began to slow from its post-Covid rebound — rival Telus Corp. announced 6,000 job losses last summer. BCE expects to generate savings of as much as C$200 million ($148 million) this year. 

The company gave subdued guidance to investors, forecasting revenue growth of 0% to 4% for the year ahead. Adjusted earnings may rise 1.5% to 4.5%, before interest, taxes, depreciation and amortization. The company is pulling back on capital expenditures and slowing down the building of its fiberoptic network, which it blamed on federal government policies aimed at creating more competition.

Shares of BCE were down almost 4% at C$50.99 at 10:30 a.m. Toronto time, the lowest since October. 

“We need to take additional measures in response to increasingly unsupportive federal government and regulatory decisions, legacy business declines and a macroeconomic environment with higher interest rates and continued inflation,” BCE said. 

BCE raised its dividend by 3.1% — less than the usual 5% for the first time in over a decade. The company’s adjusted earnings per share of 76 Canadian cents in the fourth quarter exceeded the average analyst estimate of 73 cents.  

BCE’s media division owns BNN Bloomberg Television, which is run in partnership with Bloomberg LP. 

--With assistance from Ilya Banares.

(Updates with share move in fifth paragraph)

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