BCE Inc. announced today that it will cut about 2,500 management jobs, representing about six per cent of Bell’s workforce. The downsizing includes the 30% reduction in executive positions announced back on July 11th. Canada’s largest telephone company said in a statement. “Combined with other reductions undertaken earlier this year, the changes announced today are expected to provide annualized savings of approximately $300 million.”
George Cope, BCE’s president and CEO, stressed that the changes are absolutely necessary.
“We are moving forward with a streamlined management structure that brings everyone at Bell closer to the customer and allows us to compete more effectively,” he said. “This new structure positions us as a far more efficient and cost-effective operator in the intensely competitive Canadian communications marketplace.”
Earlier this month, the public company said its $52-billion takeover by a private group would go forward at the agreed on price of $42.75 per common share. The deal, the world’s biggest leveraged buyout, is expected to close on Dec. 11, 2008. The takeover group is led by the Ontario Teachers’ Pension Plan.