AT&T Canada Inc. has announced an additional 270 job cuts, blaming the recent Canadian Radio-television and Telecommunications Commission (CRTC) price cap ruling.
The Toronto-based telecommunications company is still considering an appeal of the CRTC decision to “address the regulator’s responsibility to ensure a competitively cost neutral Canadian telecom market,” said John McLellan, vice-chair and CEO of AT&T Canada, in a press release issued yesterday. The CRTC ruling determined the price competitive local carriers have to pay to carriers like Bell Canada for the use of their networks.
AT&T feels the CRTC decision will only reduce its operating costs between eight to 10 per cent, less than the 15 to 20 per cent projected by the regulatory board, McLellan stated.
The latest job cuts come after the company announced 1,017 staff reductions on May 2. The additional cuts will save AT&T Canada about $10 million, and combined with the $80 million savings from the May job reductions, the 2002 capital expenditures will be reduced from $220 million, to a maximum of $170 million.
The board of directors has begun meetings with an ad hoc committee representing holders of over 60 per cent of AT&T’s public debt, in an effort to reach a debt restructuring agreement.
For details on the job reductions, visit http://www.attcanada.com.