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

Kootenay fires grow — more evacuation alerts

Syringa fire prompts evacuation alerts plus HWY 3 closure and U.S. fire crosses into B.C.

LETTER: Sir John A(ryan) Macdonald

From reader Claus Lao Schunke

Evacuation alert for Syringa and Deer Park

The Syringa Creek Fire grew Saturday resulting in evacuation alerts.

‘Beauty amongst such tragedy:’ B.C. photographer captures nature’s trifecta

David Luggi’s photo from a beach in Fraser Lake shows Shovel Lake wildfire, Big Dipper and an aurora

Smoke scraps MS Bike Challenge

The annual fundraising event cancelled its cycling Saturday because of poor air quality

VIDEO: Auto repair shop celebrates Nelson mural festival

A painting by Barry Overn at Downtown Automotive turned heads at the festival opening.

Mother charged with homicide of Langley seven-year-old

Aaliyah Rosa’s 36-year-old mother charged with second degree murder: IHIT

Despite threats, Soldiers of Odin a no show at B.C. tent city

Nanaimo’s Discontent City held a counter rally on Sunday

Trudeau formally announces he’ll run again in 2019

PM Justin Trudeau gears up to run in next year’s election

Smoke from B.C. wildfires prompts air quality advisories across Western Canada

A massive cloud of smoke hangs over B.C. and Alberta due to wildfires

Pope on sex abuse: “We showed no care for the little ones”

In response to the Pennsylvania report, Francis labeled the misconduct “crimes”

Ottawa announces $189M to extend employment insurance for seasonal workers

The pilot project provides seasonal workers with up to five more weeks of benefits

Trump rages on Mueller following Times report

Trump takes to Twitter calling Robert Mueller “disgraced and discredited”

BC Wildfire crew rescues lost puppies

They were just leaving the Monashee Complex of fires when they found the cutest creatures.

Most Read