3,300 Shaw employees accept severance deals

The departure of one-quarter of Shaw Communications Inc.’s workforce will be manageable —and mitigated by a technology-driven push toward customer self-service — even though the 3,300 who elected to take a voluntary severance package was five times more than its original estimate, its president said Thursday.

The Calgary-based company, which owns Canada’s second-largest cable TV operation and the country’s fourth-largest mobile phone service, had initially aimed the package at 6,500 employees and estimated about 10 per cent would accept the deal offered about two weeks ago. It said Thursday that all eligible employees who volunteered to take the deal will be accepted.

“We publicly set a modest goal,” Shaw president Jay Mehr said.

“I think what we have now learned — and it’s a good outcome — is that the takeup we now have in the first phase means that we won’t have to do cuts later on.”

The departures will be spread over 18 months — with people in operational positions likely to stay longer than those in leadership positions, he said.

The move is part of a multi-year initiative aimed at succeeding amid technological changes in a rapidly changing and intensely competitive marketplace. Shaw has said it plans to make more use of online and smartphone apps to provide customer service, and provide more selfinstalled service.

“To be clear, overwhelmingly, the takeup has been in areas that are the focus of the transformation,” Mehr said.

“But we’re going to serve our customers and we’re going to do what’s right and make whatever investments are required to do that.”

The majority of departures will be outside its customer support, retail and sales operations and involve roles that are being affected by technological change.