A tale of two results
TELUS, one of Canada’s leading technology companies has posted its best-ever second quarter result. However, 6,000 people including many highly skilled immigrants will lose their jobs across the TELUS’ global footprint.
A total customer growth of 293,000 was announced in the second quarter record. Operating revenues also increased by 13% over the same period to $4.9 billion. But like Rogers and Bell, TELUS is also facing a fresh heat.
Increasing macroeconomic pressure, new regulatory demands and changes in consumer behavior have all impacted service demand and profit margins at TELUS. “It is therefore with a very heavy heart that we are seeking to reduce 6,000 staff positions across our global footprint, representing approximately 4,000 reductions at TELUS and 2,000 at TELUS International, including offering early retirement and voluntary departure packages,” said Darren Entwistle, the company’s president and chief executive.
The company added: “While these decisions are difficult to undertake, they are a necessity in order to enhance innovation for our customers and drive profitable growth for our business and investors. These programs will advance sustainable EBITDA margin improvement and lead to greater free cash flow generation in the medium-to-longer-term.
TELUS to invest in AI solutions
TELUS also announced that the company has “actioned significant incremental cost efficiency efforts and is also driving additional automation and generative AI-enabled solutions to further optimize its cost structure and go-to-market sales opportunities.
Despite these near-term challenges, we remain highly confident in our strategy and investment thesis. This is amplified by meaningful opportunities in respect of digital transformation – particularly with generative AI adoption – and the continuing critical importance of differentiated digital customer experience solutions in the market, which remains a vibrant tailwind for TELUS’ medium- and long-term growth and profitability.
“These investments will ensure we remain market leaders in driving innovation and value for our customers, realizing profitable growth for our shareholders, and supporting our team members and communities. Our winning strategy remains unchanged.”