MTS AllStream Cuts Costs by Laying off Workers

5:10 am on November 30, 2005 | Category: Business, Telecom Services

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Manitoba Telecom Services Inc, also known as MTS AllStream, has announced that they will be laying off 750 to 800 workers in a cost-reduction method aimed at meeting increased competitive pressure.

The cuts will result in total savings to the company of $50 to $60 million per year, and will take place mostly in the first half of 2006, according to an announcement from the Winnipeg-based company on Tuesday.

“We have a long tradition of successfully capitalizing on change at our company,” commented CEO, Bill Fraser. “Our efforts through the first phase of our transition have led to more than $40 million in annual cost savings, and have also identified opportunities for significant additional cost reductions.”

The main reasons cited for this sizable layoff are the rapidly evolving Canadian telecommunications market, and increased competition from cheaper and more efficient rival technologies, such as VoIP telephony.

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    1. I disagree. The reason for the layoffs is due to incompetent management.

      Comment by Out The Door — March 16, 2006 #

    2. Management certainly would have played a role as well, but it is important to look at the root causes of decline in the telephone industry.

      Managers can get away with a lot more incompetence when there is no competition.

      Comment by Jeremy — March 16, 2006 #

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