Telus Corp. (T) has announced that it’s cutting 6,000 jobs after reporting a 60% plunge in its second-quarter net income.
The Vancouver-based telecommunications firm said the job cuts include 4,000 workers at its main Canadian operations, along with 2,000 cuts at Telus International.
The job cuts come as Telus reported that its Q2 net income fell 60% year-over-year to $196 million.
The company's net income amounted to $0.14 per share for the quarter ended June 30, down 59% from $0.34 a share in the same quarter of 2022.
Analysts had expected Telus to report a profit of $0.22 a share in Q2, according to Refinitiv data.
Revenue in the second quarter totaled $4.95 billion, up 13% from $4.40 billion a year earlier.
The company added 110,000 net new mobile phone subscribers in the quarter, up 18% from 93,000 a year earlier.
In July of this year, Telus revised down its annual guidance for 2023, citing demand pressures and a need to reduce costs.
The company said it is now forecasting revenue growth of 9.5% to 11.5% for all of this year, down from a previous growth estimate of 11% to 14%.
Telus had 108,500 workers at the end of 2022. The job cuts are expected to cost the company $475 million this year and eventually lead to annual savings of about $325 million.
Telus’ stock has declined 21% over the last 12 months to trade at $22.97 per share.
