WINNIPEG – MTS Allstream is reducing its Manitoba workforce by up to 325 positions as part of its ongoing cost reduction program.
The telco has announced a voluntary reduction program for employees, which will cost the company from $20 to $25 million in buyouts. It will result in a one-time charge to income of about $0.19 to $0.24 per share in the fourth quarter of 2006. The move is expected to save the company about $22 million a year. The announcement will have no effect on MTS Allstream’s 2006 financial outlook for continuing operations, the company said.
Last November, MTS Allsream announced its Transition Phase II, or TP2, cost reduction program, aimed at saving at least $100 million in annual expenses in 2006 and 2007.
“Our business environment is one of ever-increasing competition in all market segments,” said MTS Allstream CEO Pierre Blouin. “Our TP2 program has been very successful so far, and the voluntary program we are announcing today is an important part of our ongoing efforts to improve our cost structure and evolve our business in response to the challenges of today’s telecommunications marketplace.”
The workforce reductions are necessary, said Kelvin Shepherd, President Consumer Markets. “Our current business realities require a workforce and cost structure that ensures our business remains competitive. Our voluntary programs have a good record of success.”
