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

Oil tanker ban to be reviewed by committee

Indigenous groups for and against Bill C-48 travel to Ottawa to influence the Senate’s decision

Man charged following Q.C. house fire that set off explosives

Thomas Daniel Kendall may face up to 14 years for causing bodily harm by breaching duty of care

Wind warning issued for Haida Gwaii today and overnight

Another wind warning has been issued for Haida Gwaii for today and… Continue reading

Haida leaders join coastal First Nations push for tanker ban

Elected and hereditary Haida leaders met some Ottawa senators last week, and… Continue reading

Grim situation in coming year for northwest, B.C. fisheries

Annual post-season review in Prince Rupert informs DFO on how to manage 2019 fishing season

Man caught on camera allegedly trying to defraud ICBC

Auto-insurer warns B.C. drivers to record info after crashes

Warning issued as forecast calls for 20-foot waves in Tofino

Dangerous waves, strong currents and upper-shoreline flooding expected for Tofino-Ucluelet area

An 800-pound pig named Theodore needs a forever home, B.C. society says

‘Theodore is not destined to be somebody’s bacon’

2,000 Canadians died of an overdose in first 6 months of the year

New data from the Public Health Agency of Canada shows the crisis is not subsiding

Teenager Alphonso Davies wins Canadian Men’s Soccer Player for the Year Award

Derek Cornelius and Chilliwack native, Jordyn Huitema were named Canadian Youth International Players of the Year

B.C. teen MMA fighter shows heart

Young Unity MMA competitors bring home Ws

Another B.C. city votes to ban single-use plastic bags

First six months of proposed ban would focus on education, not enforcement

UK Prime Minister Theresa May wins party no-confidence vote, but troubles remain

May won the vote of 317 Conservative legislators with a 200-117 tally

B.C. trustee’s anti-LGBTQ comments got him barred from schools

Barry Neufeld calls vote to leave him off liaison list ‘workplace discrimination’

Most Read