Rogers cutting jobs as it integrates with Shaw

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Rogers Communications Inc. RCI-B-T has been eliminating positions in the wake of its $20-billion takeover of Shaw Communications Inc., and more job reductions are on the way, according to sources.

A number of employees have been let go in recent months, and two sources familiar with the situation say additional job reductions are planned. The Globe and Mail is not identifying the individuals because they are not authorized to discuss the matter publicly.

A spokesperson for the Toronto-based telecom confirmed that a “small percentage” of its work force has exited, adding that during the past three months, Rogers has also hired more than 2,000 people.

“Since coming together with Shaw, we’ve been looking at the structure of the combined company and identified some overlap in corporate roles,” Sarah Schmidt said in a statement.

“While we always try to find other roles for our people, a small percentage of our employees have left the company. As we continue to integrate with Shaw, we’ll thoughtfully minimize duplicate roles and hire staff to support our customers and build our networks,” she added.

The company did not specify how many positions will be eliminated or which areas of the business will be affected.

Politicians and industry observers expressed concerns about the possibility of job cuts in the lead-up to the takeover, as Rogers was expected to seek efficiencies during its integration with Calgary-based Shaw. Rogers has previously said that the deal would result in $1-billion of synergies.

Samfiru Tumarkin LLP, a Canadian law firm specializing in employment law, said on its website last week that Rogers “laid off multiple employees” on June 22 because of restructuring.

“Since June 22, Samfiru Tumarkin LLP continues to be contacted by numerous Rogers and Shaw employees claiming to have been terminated due to wider ‘restructuring’ related to the recent merger between the two companies, some with many years of service,” Lior Samfiru, the firm’s national co-managing partner, said in an e-mail.

“Our firm is reviewing and assessing their severance packages … to ensure that the full and appropriate amount of compensation is being provided to these former workers following years of dedicated service.”

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In order to secure approval for its takeover, which closed in April, Rogers vowed to create 3,000 new jobs in Western Canada within five years and maintain a Calgary headquarters for at least 10 years.

However, Rogers chief executive officer Tony Staffieri has previously said that the telecom would also be eliminating some positions in “areas of duplication.”

At the time, Mr. Staffieri declined to specify how many jobs would be eliminated, but said the reductions would be done “very thoughtfully.” He added that on a net basis, the merger would result in more jobs, as the company would deploy resources in growth areas.

“This is about net growth,” Mr. Staffieri said at the time. “Canada’s growing, and we’re growing with it.”

Ms. Schmidt said Rogers remains “committed to creating thousands of jobs over the next few years as our business continues to grow.”

Shortly after its takeover of Shaw closed, Rogers announced the repatriation of about 300 Shaw customer-service and technical-support jobs from Central America to Manitoba, Alberta and British Columbia.

The company said at the time that it also planned to hire 1,000 customer-service representatives across the country.

Rogers rival BCE Inc. BCE-T announced earlier this month that it is eliminating roughly 1,300 positions, citing losses in its media business and declining legacy phone revenues.