GROUP TELECOM RESTRUCTURES, LAYS OFF 350
TORONTO, ON -- In an effort to reduce costs and bring the business to profitability, GT Group Telecom has announced...
February 21, 2002
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TORONTO, ON — In an effort to reduce costs and bring the business to profitability, GT Group Telecom has announced it will reorganize its operations and cut approximately 350 positions across all levels of the company in Canada.
The workforce reduction will reduce cash expenses by approximately $30 million per year. The reduction will result in a one-time cash cost of approximately $20 million in the second quarter of the company’s 2002 fiscal year.
“We believe that this reorganization will have a positive impact on our ability to turn EBITDA-positive in the fourth quarter of fiscal 2002,” said Milliard, CEO of Group Telecom. He said “during this difficult time in the economy we have a responsibility to our shareholders, customers, and employees to ensure the company’s financial well-being while we continue to execute on our business plan.”
With this reorganization, the company plans to shift its focus from network deployment to leveraging its network assets to profitability, increasing operational efficiency and customer service.
Group Telecom is Canada’s largest independent, facilities-based telecom provider, with a national fiber-optic network linked by 409,953 strand kilometres of fiber optics, as of December 31, 2001.