Rogers Restructuring: A Sign of Broader Trends in Canadian Telecom?
Rogers Communications Inc. Recently announced layoffs within its in-house IT support team, outsourcing the perform to a third-party vendor. While Rogers maintains most affected employees will be rehired by the vendor, this move signals a larger trend of restructuring and cost-cutting within the Canadian telecom industry.
The Rise of Outsourcing and AI in Telecom
The decision to outsource IT support isn’t isolated. According to employment lawyer Lior Samfiru, this mirrors a wider shift across the tech and communications sectors. Companies are increasingly turning to third-party vendors and leveraging artificial intelligence (AI) to streamline operations and reduce costs. This is driven by a need to adapt to new technologies and improve efficiency.
Rogers spokesperson Zac Carreiro emphasized the company is “evolving its internal IT support” by expanding its partnership with a third-party provider. This suggests a strategic move towards a more flexible and potentially cost-effective IT infrastructure.
Industry-Wide Adjustments: Bell and Telus Follow Suit
Rogers isn’t alone in making significant workforce adjustments. Bell Media recently laid off 60 employees following a larger reduction of 650 roles in November. Similarly, Telus Corp. Offered voluntary severance packages to approximately 700 employees in January. These actions highlight a common thread: telecom companies are actively seeking ways to manage expenses and prepare for future growth.
These changes are often linked to the transition to new technologies, particularly in customer support. Companies are investing in AI-powered solutions to handle routine inquiries, freeing up human agents to focus on more complex issues.
MLSE Acquisition and Rogers’ Expanding Portfolio
This restructuring occurs alongside significant investment and expansion for Rogers. In July 2025, Rogers completed its acquisition of BCE Inc.’s 37.5% stake in Maple Leaf Sports & Entertainment (MLSE), increasing its ownership to 75%. This move adds the Toronto Maple Leafs, Raptors, Argonauts, and FC to Rogers’ existing portfolio, which already includes the Toronto Blue Jays, and Sportsnet.
The $4.7-billion deal, coupled with a new $11-billion NHL media rights agreement, demonstrates Rogers’ commitment to the sports and entertainment market. This strategic diversification may be influencing internal cost-saving measures in other areas of the business.
Financial Performance and Debt Management
Recent financial reports indicate a need for careful financial management. While Rogers’ second-quarter revenue and adjusted EBITDA grew by 2%, the company is focused on reducing debt. The sale of its wireless backhaul infrastructure to Blackstone for CAD 7 billion is a key component of this strategy, allowing Rogers to pay down debt and reduce interest expenses by CAD 200 million annually.
The company’s leverage ratio has improved to 3.6 times, nearing its pre-Shaw deal profile. This suggests a renewed focus on financial stability and responsible investment.
What Does This Mean for Consumers?
While these internal changes may not immediately impact consumers, they could influence the long-term landscape of the Canadian telecom market. Increased efficiency and cost savings could potentially lead to more competitive pricing or innovative service offerings. Still, it’s also possible that companies will prioritize profitability and shareholder value.
Did you know? Competition in Canada’s telecom market remains a key factor influencing these strategic decisions. Rogers, Bell, and Telus are constantly vying for market share, and efficiency is crucial for maintaining a competitive edge.
FAQ
Q: Will outsourcing IT support affect the quality of service for Rogers employees?
A: Rogers states that there will be no impact to employee support, including on-site IT assistance.
Q: Are other Canadian telecom companies making similar changes?
A: Yes, both Bell and Telus have recently announced workforce adjustments and cost-cutting measures.
Q: What is driving these changes in the telecom industry?
A: The shift is driven by the need to adapt to new technologies, improve efficiency, and manage debt.
Q: What does Rogers own besides its telecom business?
A: Rogers owns the Toronto Blue Jays, Sportsnet, and now holds a 75% stake in Maple Leaf Sports & Entertainment (MLSE), which includes the Toronto Maple Leafs, Raptors, Argonauts, and FC.
Pro Tip: Keep an eye on industry news and financial reports to stay informed about the latest developments in the Canadian telecom sector.
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