Canadian regional carrier Shaw Communications used its third-quarter 2018 financial report to announce that approximately 850 employees left the company between March 29th, 2018 and May 31st, 2018 as part of the company’s voluntary departure program (VDP).
The carrier also reportedly cut operating costs by approximately $16 million, while reducing capital costs by $3 million.
The VDP is part of Shaw’s ‘Total Business Transformation’ (TBT) initiative, aimed at modernizing the company’s operations.
Shaw offered buyouts to 6,500 Shaw and Freedom Mobile employees in January 2018. Of that number, 25 percent — approximately 3,300 employees — chose to accept buyouts.
Roughly 1,200 employees are expected to depart the company by the end of fiscal 2018, and Shaw expects to cut costs by approximately $8 million by the end of the year.
Shaw said in a June 28th, 2018 media release that the company has incurred a total of $430 million in restructuring costs so far, “in connection with various other TBT activities.”
The company said that it doesn’t expect “full-year” restructuring costs to exceed $450 million.
It’s important to note that employees who accepted buyouts began leaving Shaw on March 29th, 2018.
Additionally, departures are set to take place over a 24-month period, while payments are set to take place over a 34-month period.