Bell Canada plans to cut 2,500 management jobs in an effort to lower operating costs, the telecom giant said Monday.
The cuts, which amount to six per cent of its total workforce, include a 30 per cent reduction in executive positions that were announced earlier this month.
In total, the layoffs will help save Bell about $300 million in annual costs.
"It is always difficult to see colleagues depart, but these changes are absolutely necessary," George Cope, president and CEO of BCE and Bell Canada, said in a press release.
"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."
Bell's wireless and data businesses face stiff competition from cable TV companies Rogers, Shaw and Videotron.
"This new structure positions us as a far more efficient and cost-effective operator in the intensely competitive Canadian communications marketplace," said Cope.
The Montreal company said non-management, front-line service employees won't be affected by the restructuring move. Bell has been adding to that group to help improve customer service at every level.
Last month, Canada's top court ruled in favour of the planned $52 billion leveraged takeover of Bell Canada's parent company, BCE.
The ruling paves the way for the biggest corporate buyout in the country's history to move forward. The deal is expected to be completed by December.
The takeover is being led by the Ontario Teachers Pension Plan Board and several U.S. partners: Providence Equity Partners, Madison Dearborn Partners and Merrill Lynch Global Private Equity.
Cope, a former Telus Corp. executive, replaced Michael Sabia as CEO of BCE and Bell earlier this month.
In an interview with The Globe and Mail, Cope promised he would bring dramatic changes within his first 100 days on the job.
The takeover creates an expectation that "this is an opportunity to implement change at a faster rate than you would have seen before," Cope said in the interview.
Sources tell The Globe that Cope plans to continue with an aggressive strategy to slash cost, non-core telecom assets and layers of management.
