Bell Canada to shed up to four thousand workers

3 Feb 2006

Bell Canada plans to cut between 3,000 and 4,000 jobs in 2006, on top of the 5,000 positions it already axed last year. The company is attributing the redundancies to higher taxes which led to a lower last quarter profit. Bell’s parent BCE also plans to sell a minority stake in its satellite unit Telesat in the second half of this year via an initial public offering (IPO). It expects to raise over CAD1 billion (USD875 million) via a combination of the IPO and a debt issue planned at Telesat. This, added to cash from recent asset divestments, will go towards buying back some 5% of BCE shares for around CAD1.3 billion, reducing debt by CAD1 billion and channelling CAD300 million into pensions financing.

Canada, BCE (old), Bell Canada Enterprises (BCE)