BCE to Lay Off 9% of Workforce as Profit Slides, Revenue Edges Forward

By Adriano Marchese

BCE on Thursday said it would cut its workforce by nearly one-tenth in a bid to cut costs after reporting a decline in profit and in-line revenue growth in the fourth quarter.

The Canadian telecommunications giant reported a decline in net income to 435 million Canadian dollars ($323.1 million), or C$0.42 a share, down from C$567 million, or C$0.58 a share, in the comparable quarter a year ago.

Adjusted earnings rose to C$0.76 a share. According to FactSet, analysts were expecting a more modest rise to C$0.73 a share.

Revenue rose 0.5% to C$6.47 billion, in line with analyst expectations.

BCE said that it is reducing its workforce by about 4,800 positions, or 9% of all its employees in 2024.

The company said that the in-year cost savings will be between C$150 million and C$200 million, and then C$250 million in savings annualized thereafter.

BCE said that this is part of a broader plan to reduce its capital expenditure. It said that it is targeting over C$1 billion in capital expenditure reductions in 2024 and 2025, including a minimum of C$500 million this year.

The company has also said that it will roll back its fiber network expansion and cap its speeds in response to government and regulator policies.

"To position Bell for future success, Bell is taking action to lower its cost structure and align costs to the revenue potential of each business segment. This includes Bell's largest workforce restructuring initiative in nearly 30 years," BCE said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 08, 2024 07:54 ET (12:54 GMT)

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