Analysts do not expect the company’s latest measure to meet its profit expectations
, but the Toronto-based wireless provider will still eliminate 375 jobs. The layoffs will affect employees in various departments, including in the sales and management ranks. The cuts are in effect as of Tuesday.
Rogers spokesperson Patricia Trott confirmed that there are no more plans for job cuts for the remainder of the year.
This move is part of its cost-cutting strategy that was announced
in March when 300 jobs were cut. The plan comes as Rogers has seen a drop in profits, an increase in wireless competition in and higher costs.
Rogers, which also owns City TV
, the Sportsnet network and the Toronto Blue Jays, is hoping to see higher revenues from its devices connected to wireless networks, mobile banking project with CIBC and other services it offers for businesses. It is also undergoing other methods, such as enhancing its supply chain system and analyzing its discretionary spending.
“We're managing costs where it makes sense, but we're continuing to invest in driving the business forward and we have a focus as well on driving new sources of revenue,” said Trott in an interview with the Canadian Press
Rogers Wireless presently has 9.3 million subscribers in Canada, but it is facing tough competition from the likes of Bell, Telus and other companies entering the market, including Wind, Public Mobile and Mobilicity. For quite some time, Rogers maintained an advantage over its competition until its competitors upgraded their networks to sell smartphones.
During Tuesday’s afternoon trading session at the Toronto Stock Exchange, Rogers shares
were up seven cents to $36.58.
The company is set to announce its second quarter earnings on July 26.