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Shaw slides as company to lay off 400 employees
Shaw Communications Inc. (TSE:SJR.B), a Western Canada-focused cable-TV and media company, retreated in morning trading after saying it will trim 400 job as it streamlines its consumer and business services into two new units.
The shares inched down 0.1 percent to C$26.33 at 9:33 a.m. in Toronto.
The Calgary, Alberta–based company said that both management and nonmanagement jobs will be affected, but that it will also hire more than 100 people to support the new structure, according to a statement released late yesterday
The company will group together residential cable, satellite, Internet and home-phone services into a consumer business unit. Enterprise services, including cable, telephony, satellite and tracking, will be bundled into a new business unit.
“We are eliminating duplication of work and organizing our activities and operations in a way that best meets the needs of our customers and viewers,” Chief Executive Officer Brad Shaw said in the statement.
The company’s media business will remain a standalone unit, while its engineering and information-technology functions will be grouped into a new technology and network operations team, Shaw said.
Shaw Communications has about 14,500 employees across its operations and delivers services to about 3.2 million customers in Canada.
Last week, Shaw said profits improved to $222 million in the second quarter, driven by the sale of its stake in French-language cable channels Historia and Series+ to Corus Entertainment.
Revenue inched up 2 percent to $1.27 billion, aided by better results from its cable and satellite divisions.
The shares have rallied 14 percent in the past 12 months, giving the company a market value of C$12 billion.
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