Bell Canada to cut 1,300 jobs, offload 9 radio stations

• Bell Canada Inc. (TSX:BCE) is cutting is 1,300 jobs and closing or selling nine radio stations
• The Canadian media giant announced Wednesday that the layoffs represent roughly 3 per cent of its workforce as the company plans to “significantly adapt” how it delivers the news
• Bell stated that these significant reductions would be felt at all levels of the company, largely in management
• The company admitted that it incurs $40 million (and growing) in annual operating losses, and the profitability of its radio business has been cut in half since the onset of COVID
• Bell Canada Enterprises Stocks (TSX:BCE) opened trading at C$60.67 per share and fell 2.31 per cent by market close

Bell Canada Inc. (TSX:BCE) is cutting is 1,300 jobs and closing or selling nine radio stations.

The Canadian media giant announced Wednesday that the layoffs represent roughly 3 per cent of its workforce as the company plans to “significantly adapt” how it delivers the news.

In a news release, Bell stated that these significant reductions would be felt at all levels of the company, largely in management. The company admitted that it incurs $40 million (and growing) in annual operating losses, and the profitability of its radio business has been cut in half since the onset of COVID-19.

The Canadian Press received an internal memo on the cuts that talked about moving to a single newsroom approach across Bell’s brands.

“To succeed in today’s challenging economic, regulatory and competitive environment and be ready for what comes next, we need to accelerate our shift away from how telecom and media companies have operated in the past,” Mirko Bibic, BCE Inc. and Bell Canada president and CEO, wrote in an open letter published on BCE’s corporate website. “A very important part of this shift is aligning our cost structures to the revenue potential of each business segment we operate in. Doing so will lower our overall costs and give us the room to fund new growth opportunities to better serve our customers and ensure our future success.”

Bell Media owns and operates the CTV National News, BNN, CP24, TSN, and its local TV news stations across the country.

Bell is a wireless and internet service provider, offering wireless, broadband, television and landline phone services in Canada. It is one of the big three national wireless carriers, with its roughly 10 million customers constituting about 30 per cent of the market. Earlier this month, Bell completed its acquisition of FX Innovation, a Montréal-based provider of cloud-focused managed and professional services and workflow automation solutions. Click here to read more on that news.

Bell Canada Enterprises Inc. (BCE) opened trading at C$60.67 per share and fell 2.31 per cent by market close. BCE shares have fallen 5.38 per cent since this time last year.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.