Rogers Will Cut At Least 4,000 Jobs if Cabinet Approves Shaw Buyout, Claims Conservative MP

Rogers Communications Inc. will cut 4,000 to 5,000 jobs if the federal cabinet approves its attempted buyout of rival telecommunications company Shaw Communications Inc., claims Conservative MP Rick Perkins, who says he was told this information by Rogers insiders.

“Successful acquisitions obviously require job cuts and generally don’t involve job increases. And Rogers told the Competition Tribunal that it will realize efficiencies through job cuts in most areas of both companies,” Perkins told the House of Commons Standing Committee on Industry and Technology on Jan. 25, as first reported by Blacklock’s Reporter.

“Speaking with your company insiders, I’m told that Rogers will actually cut 4,000 to 5,000 jobs in the combined entity—not the networking, temporary jobs.”

Perkins asked Rogers President and CEO Tony Staffieri if the claim was true.

“As a result of this transaction, there will be a net investment in more jobs,” Staffieri replied. “What we do as a company is invest in networks so that we can serve our customers and give them better quality and coverage.”

Staffieri added that Rogers is continuously investing more and more of its profits back into its networks.

Perkins told him, “My question was about job losses, not your profit margins at this time,” asking again, “Are you going to cut thousands of jobs in this merger?”

Staffieri said that there will be areas of “overlap” and that Rogers will be looking to “redeploy resources in areas that are growing.”

“We are a net-growth company and we see more opportunity for employment throughout the country.”

Rogers-Shaw Merger

Rogers announced its proposed buyout of Shaw in March 2021, which Rogers said would be a “$26 billion transaction.”

As per the Competition Act, cabinet must give its approval of the buyout before it can go through.

Some MPs on the Commons industry committee, which has been conducting hearings on the planned buyout, have voiced concerns that the deal could drastically reduce competition across Canada’s telecommunications sector.

“I can’t help but draw contrast between Canadians struggling with affordability and seeing some of Canada’s wealthiest families gain significantly from this transaction,” said Liberal MP Viviane Lapointe during the committee’s meeting on Jan. 25.

“Shaw employs thousands of Canadians, and how are you ensuring that this deal not only benefits the owners of Shaw but also your own employees who are also challenged by affordability issues?”

Paul McAleese, Shaw’s president, told the committee that the buyout is a “very pro-competitive … series of transactions.”

“We’re seeing considerable advances in the affordability of telecom across the board,” he said.

Rogers hopes to close the buyout deal by Jan. 31, although Industry Minister François-Philippe Champagne still needs to approve it.

The Competition Tribunal approved the deal on Dec. 30 after about four weeks of hearings.

The Canadian Press contributed to this report.