Canada’s Manitoba Telecom Services (MTS) said last week that it will cut a quarter of the workforce at its national carrier and business telecoms division, Allstream, whilst also reducing CAPEX and slashing its annual dividend, following a strategic review. As reported by Reuters, low interest rates and a spiralling defined-benefit pension bill have exacerbated the financial pressure of tough competition for the Manitoban telco, causing it to take action including cutting CAPEX at Allstream by 20%-30%, while 400 staff have received working notice and will exit the business in 2015-16, on top of 100 Allstream employees who have already left. The company has pre-funded CAD120 million (USD99.1 million) into its pension plan using existing credit facilities, a one-time move which it expects to eliminate the need for solvency payments for 2015-16.
Have feedback, corrections, or story ideas? Send them to email@example.com.
Browse Past Issues
Filter CommsUpdate by the following categories or use the search.
Visit our help page information on performing advanced searches, including how to restrict the results by country or company.
CommsUpdate is an outstanding advertising venue for companies seeking to reach:
- International carriers
- Wholesale service providers
- Equipment and software vendors
- Telecom investors