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Rogers to Cut Workforce, Increase Stake in Cable

By Staff Author | November 30, 2009

Canadian wireless giant Rogers Communications says it plans to cut 3 percent of its workforce as part of its plan to integrate its wireless and cable segments.

The 900 layoffs are targeted at middle management, according to the company.

This holiday season marks the first time Rogers has not had an exclusive right to carry Apple’s iPhone. Rival carriers Telus and Bell now carry the handset.

Rogers also reported it had increased its stake in cable company Cogeco Cable by $116.6 million, bringing its share of the company’s subordinate voting shares to 29.8 percent. Rogers now owns 3.2 million shares of Cogeco Cable. In addition to the shares of Cogeco Cable, Rogers also raised its stake in Cogeco’s parent company to 1.62 million shares.

In a statement, Rogers said the purchase was for “investment purposes” and that it has “no current intention” of buying the company.

The deal positions Rogers to better compete against Shaw Communications, which recently purchased Mountain Cablevision in Ontario. Mountain Cablevision’s market competes closely with Cogeco Cable and Roger’s own cable segment in the Toronto area.


Filed Under: Carriers

 

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