The Shaw Communications headquarters is seen in Calgary, Thursday, Jan. 11, 2018. Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package, far above the company’s original estimate of about 650. THE CANADIAN PRESS/Jeff McIntosh

3,300 Shaw employees accept voluntary buyouts

Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package

Shaw Communications says 3,300 of its employees have decided to take a voluntary buyout package — far above the company’s original estimate of about 650.

The Calgary-based company says about one-quarter of its workforce will be departing over an 18-month period as part of a previously announced multi-year transformation of its business.

Among the departures will be chief financial officer Vito Culmone, will be leaving the organization May 4. He’ll be replaced by Trevor English, a 20-year employee, who has been chief strategy officer responsible for business development.

Shaw originally estimated about 10 per cent of the 6,500 eligible employees would take the voluntary buyouts, when they were announced about two weeks ago.

RELATED: Shaw offers severance packages to thousands of employees

But Shaw president Jay Mehr said Thursday in a statement that “the actual uptake falls within scenarios considered and therefore we expect the business to continue to operate in the normal course with no impact on customer experience.”

It says the company will manage the timing of the departures in an orderly fashion to minimize the impact on the business. In addition, the majority of its customer care, retail and sales employees weren’t eligible for buyouts.

Most of the voluntary departures are in areas of Shaw’s business that can be further optimized through the use of technology and a more efficient service delivery model, the company said.

As a result of the departures, Shaw will incur a $450 million restructuring charge in the second quarter of its 2018 financial year, primarily related to severance costs. Actual payments will be spread over 18 months, starting in April.

“We made the difficult but necessary decision to modernize our wireline and satellite businesses by offering a generous package to those people who helped us build Shaw and chose not to join us in this transformative period of growth,” Mr. Mehr said.

“We thank all our employees for the contributions they have made to this organization and we thank each of them for their dedication to our customers.”

Companies in this story: (TSX:SJR.B)

David Paddon, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Watch for high winds today and tomorrow

A wind warning is in effect for Greater Victoria. According to Environment… Continue reading

Former five-term mayor endorses Murdoch’s mayoral bid

Causton endorses Murdoch’s 4-Pillar Platform; invites public to ‘meet the candidate’ event

Oak Bay Beach Hotel ranked in the top 10 hotels in Canada by TripAdvisor

Ranked tenth among top 25 hotels in Canada for 2018 TripAdvisor Travellers’ Choice Awards

Experts to capture and collar 20 female deer in Oak Bay starting this month

Does sedated, examined, collared and ear tagged in latest phase of deer management plan

Oak Bay spreads national pride program up Island

Register now for a flag on your lawn each long weekend this summer

WATCH: Oak Bay hosts inaugural Vancouver Island Polar Plunge for Special Olympics BC

Local cops drag multi-media journalists out for a swim ahead of March 11 event

B.C. man brings dog to court as ‘best witness’

Man is defending himself on charges of uttering threats, possessing weapon for dangerous purposes

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Vancouver artist’s cartoon of Florida school shooting resonates

Cartoon shows football coach, one of the victims, meeting others killed in school shootings

Trudeau family arrives in India for state visit

Seven-day visit includes meeting with Indian Prime Minister Narendra Modi

Military seeks DNA experts to help ID missing war dead

Federal program recovers, identifies and arranges burials for Canada’s nearly 28,000 missing war dead

B.C. files new legal action against TransMountain pipeline

Province tries to uphold City of Burnaby bylaws, provoking Alberta

BCHL Today: Powell River stuns Vernon and BCHL grads lead Team Canada

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Reports of money laundering in B.C. real estate ‘troubling’: attorney general

News report alleges people connected to fentanyl trade are using B.C. real estate to launder money

Most Read