TORONTO (Reuters) - Rogers Communications Inc (RCIb.TO), Canada’s largest wireless company and a major cable provider, said on Tuesday that it has cut hundreds of jobs to trim costs amid tough competition.
The 375 people including some managers in both wireless and fixed-line businesses were notified on Tuesday, Rogers spokeswoman Patricia Trott said. The cuts were effective immediately.
Rogers employs around 30,000 people.
“It’s a difficult decision,” she said. “It’s part of a comprehensive approach to cost management we announced earlier this year.”
The company had cut 300 jobs in March and is also looking to cut costs in the supply chain, reduce discretionary spending and improve efficiency in business processes, she said.
“While we constantly need to look for cost efficiencies, going forward we’re going to be focused on driving the business forward and driving revenue,” she said.
Revenue for the Toronto-based company dipped 1 percent in the first quarter from a year earlier as both wireless and cable units were hit by tougher competition.
Rogers has spent heavily to attract smartphone customers even as their monthly bills drop, which has piled on the pressure to reduce costs. The company also recently recorded a loss of cable TV subscribers as telecom rivals improve their offerings.
In wireless, Rogers has faced pressure from new, smaller competitors and regional cable operators such as Quebecor’s (QBRa.TO) Videotron, which have begun offering wireless service since a 2008 government auction of airwaves.
Its main national wireless competitors, Bell and Telus Corp (T.TO), teamed up several years ago to build a comparable network that has helped them narrow Rogers’ lead in total subscribers and average wireless bills.
Rogers shares, which have slipped 7 percent so far this year, were trading flat at C$36.54 by midday.
Editing by M.D. Golan