Rogers Communications is laying off about 900 staff members, mostly in upper management, described as part of a previously announced reorganization, but also seen as a preemptive move to reduce costs and streamline operations in the face of new marketplace competition.
Meanwhile, Rogers announced it has entered into agreements to purchase shares of Cogeco Cable.
The company said the staff cuts affect about three per cent of its 30,000 employees, and includes vice-president positions.
The company had recently announced its plans to unite wireless and cable operations into a single "communications" unit, which would likely mean job cuts as overlapping job functions were identified and eliminated.
Rogers Communications is acquiring 3,200,000 subordinate voting shares of Cogeco Cable Inc. at a cash purchase price, excluding commissions, of $36.43 per share, for aggregate consideration of $116.6 million. Rogers Communications is acquiring 1,623,500 subordinate voting shares of Cogeco Inc. at a cash purchase price, excluding commissions, of $28.61, for aggregate consideration of $46.4 million.
Rogers said it is acquiring the shares for investment purposes.
Rogers added that it has no current intention of acquiring ownership of or control or direction over any additional Cogeco Inc. or Cogeco Cable Inc. shares but reserves the right to acquire additional shares of Cogeco Inc. or Cogeco Cable Inc., to sell all or any portion of its holding of such shares or to enter into derivative or other transactions with respect to the shares owned by it.
The Cogeco Cable Inc. shares being acquired represent approximately 9.7% of the outstanding Cogeco Cable Inc. subordinate voting shares. After giving effect to these purchases, Rogers Communications will own 9,795,675 subordinate voting shares of Cogeco Cable Inc. representing approximately 29.8% of the subordinate voting shares and approximately 20.2% of the equity
of Cogeco Cable Inc.
The Cogeco Inc. shares being acquired represent approximately 10.9% of the outstanding Cogeco Inc. subordinate voting shares. After giving effect to these purchases, Rogers Communications will own 5,023,300 subordinate voting shares of Cogeco Inc. representing approximately 33.6% of the subordinate voting shares and approximately 29.9% of the equity of Cogeco Inc.