Telecommunications company Bell Aliant is cutting 100 jobs in three provinces in Atlantic Canada, handing the work over to a Montreal-based outsourcing company.
Brenda Reid, who handles communication and public affairs for the company, said the affected workers are responsible for internal information technology operations in Newfoundland and Labrador, Nova Scotia and New Brunswick.
The work is being taken over by CGI Group Inc., an outsourcing and consulting company.
Reid said Bell Aliant is trying to find other positions for the workers within the company, although she said they might not find work for everyone.
The jobs affected are non-unionized positions.
The company said the decision is a cost-saving measure, but Reid won’t reveal how much money will be saved.
“The initiative is being implemented to ensure we are operating as cost effectively as possible in a competitive environment,” she said.
Over the past 18 months, the regional telecommunications firm has eliminated 1,000 jobs.
Cable and wireless companies took a three per cent bite out of Bell Aliant revenues last year.
Troy Crandall, a telecommunications analyst with a Montreal investment firm, said the only way Bell Aliant can keep shareholders happy is to make cuts to offset declining sales.
“You’ve got internet that’s been out there for quite a while, growth is slowing, the same with wireless,” he said. “The only way for you to have the same profit as last year is for you to cut your costs by a dollar to make up for the lost dollar of revenue.”
Bell Aliant is also consolidating customer service from 16 locations to five — a move that will affect about 200 people. Crandall said that’s part of a larger war.
“This whole cost-cutting initiative — we’re seeing it at Rogers; we’re seeing it at Telus,” Crandall said. “It’s not just Bell Aliant. They haven’t even seen the worst of the competition. It’s continuing.”
Bell Aliant isn’t saying whether there are more cuts to come, but EastLink is preparing to add wireless to its lineup.
Crandall is forecasting a two per cent drop in Bell Aliant revenue this year.
Source:http://www.cbc.ca/money/story/2010/02/18/nl-aliant-jobs-180210.html
