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

Diners invited to kick up their heels at Gumboot Gala

Annual outdoor dinner returns in support of Langley Community Farmers Market Society

Langley toddler with sun ‘allergy’ waiting for bone marrow transplant

Charlie Lock, 2, needs treatment to reverse damage caused by rare disorder EPP

Vancouver Giants sign forward Lukas Svejkovsky

The Vancouver Giants’ newest acquisition is being described as “an incredibly skilled… Continue reading

VIDEO: Township fire crews battle blaze in abandoned house

Thursday night fire is latest in a series of empty Willoughby homes to burn

‘Sabrina’ series will film late into the night in Cloverdale

Chilling Adventures of Sabrina will be on location at ‘Cerberus Books’ until early Saturday

BC Games: Day 1 comes to an end

Medals have already been handed out following one day of competition in the 2018 BC Summer Games

Open water swimming from B.C. to Washington in 24 hours

The swim will take a full day, meaning Susan Simmons will be swimming in the black of night

ZONE 4: Heart surgery didn’t stop Liam Haysom’s journey to the BC Games

Coquitlam soccer player refused to be sidelined for long after treatment for heart condition

Cigarette packs with graphic images, blunt warnings are effective: focus groups

Warnings considered effective flag ailments smoking can cause, like colorectal and stomach cancers

Canada’s title hopes quashed at Rugby Sevens World Cup in San Francisco

On the men’s side, Canada was eliminated in the round of 16 as they were shut out by Argentina 28-0

‘We are doing the right thing:’ Protesters dig in at anti-pipeline camp

B.C. Supreme Court ruled in March that both the camp and a nearby watch house could remain in place

Astronaut drops in on Kraftwerk gig, plays duet from space

Alexander Gerst becomes an astronaut musician with live performance from International Space Station

UPDATE: Man, 32, found dead in Abbotsford was targeted, police say

IHIT identifies victim as Sukhpreet Grewal, who they say was known to police

BC Wildfire update on Okanagan blazes

Watch the media briefing on the current fire situation in the Okanagan.

Most Read