The Shaw Communications headquarters is seen in Calgary, Thursday, Jan. 11, 2018. Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package, far above the company’s original estimate of about 650. THE CANADIAN PRESS/Jeff McIntosh

3,300 Shaw employees accept voluntary buyouts

Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package

Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package — far above the company’s original estimate of about 650.

The Calgary-based company says about one-quarter of its workforce will be departing over an 18-month period as part of a previously announced multi-year transformation of its business.

Among the departures will be chief financial officer Vito Culmone, will be leaving the organization May 4. He’ll be replaced by Trevor English, a 20-year employee, who has been chief strategy officer responsible for business development.

Shaw originally estimated about 10 per cent of the 6,500 eligible employees would take the voluntary buyouts, when they were announced about two weeks ago.

RELATED: Shaw offers severance packages to thousands of employees

But Shaw president Jay Mehr said Thursday in a statement that “the actual uptake falls within scenarios considered and therefore we expect the business to continue to operate in the normal course with no impact on customer experience.”

It says the company will manage the timing of the departures in an orderly fashion to minimize the impact on the business. In addition, the majority of its customer care, retail and sales employees weren’t eligible for buyouts.

Most of the voluntary departures are in areas of Shaw’s business that can be further optimized through the use of technology and a more efficient service delivery model, the company said.

As a result of the departures, Shaw will incur a $450 million restructuring charge in the second quarter of its 2018 financial year, primarily related to severance costs. Actual payments will be spread over 18 months, starting in April.

“We made the difficult but necessary decision to modernize our wireline and satellite businesses by offering a generous package to those people who helped us build Shaw and chose not to join us in this transformative period of growth,” Mr. Mehr said.

“We thank all our employees for the contributions they have made to this organization and we thank each of them for their dedication to our customers.”

Companies in this story: (TSX:SJR.B)

David Paddon, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Ladysmith councillor resigns due to personal reasons

Councillor Carol Henderson is resigning her seat at the Ladysmith city council… Continue reading

Duncan residents escape Chemainus rollover with minor injuries

Three Duncan residents escaped with only minor injuries following a rollover on… Continue reading

Judge loses patience with man representing himself in fatal Yellow Point crash case

Dustin Dennis Zinter cross examined by Crown counsel in B.C. Supreme Court

BC Games hammer cage a community project

Cowichan rallies together to make cage a reality

Cowichan Valley welcomes the province for BC Summer Games

More than 2,000 athletes will compete in 18 sports from Friday to Sunday

BC Games: Dance, spoken-word highlights at Opening Ceremony in Cowichan

Hundreds of athletes and thousands of volunteers, coaches, parents and officials

Police to provide update on case against alleged serial killer Bruce McArthur

McArthur worked as a landscaper, allegedly concealed the remains of seven men in planters

Premiers to wrap up 2 days of meetings at New Brunswick seaside resort

Meetings held in the scenic seaside town of St. Andrews on Thursday focused on trade

B.C. city wants pot punted from farmland

Concerned about conversion from growing food to making marijuana

World’s translators push back on forcing Trump interpreter to testify

Democrats had asked translator to testify about Trump’s lengthy conversation with Putin in Helsinki

No decision on B.C. school stabbing suspect’s mental fitness for trial

The BC Review Board could not determine whether Gabriel Klein, 21, is fit to stand trial

Canadian government threatens to retaliate if Trump imposes auto tariffs

U.S president had suggested that auto imports pose a national security risk to the U.S.

Wildfire evacuation order forces bride to search for new wedding venue

Fitzpatrick Family Vineyards is under an order due to the Mount Eneas wildfire south of Peachland

Recent online kitten abuse video raises serious social media questions

UBC and UFV profs weigh in on the subject of online sharing, shaming, and our digital landscape

Most Read