Rogers Employees Face Layoffs After Transition to Ericsson

Hundreds of employees from Rogers Communications who were compelled to transition to Ericsson earlier this year are now facing layoffs. Approximately 360 of the 400 affected workers will lose their jobs in two phases, with the first group set to be laid off by October 31, 2023, and the second group on January 31, 2024. These layoffs come after a unionization effort among the employees, who allege that their roles are being outsourced.

In April, Rogers informed around 400 technical employees and managers that they had to either accept severance packages or sign contracts with Ericsson, which would take over support for Rogers’ wireless network. At that time, Rogers’ Chief Technology Officer, Mark Kennedy, assured staff that the transition would not lead to job losses.

The situation took a turn when employees learned of impending layoffs, with some being told in meetings that they would need to assist in offshoring their roles to workers in India. An impacted employee who spoke to MobileSyrup claimed that the motivation for the layoffs was not related to artificial intelligence but rather aimed at reducing labor costs.

Ericsson spokesperson Nathan Gibson disputed the number of layoffs reported, stating that only 100 employees would be affected by the cuts on October 31. He asserted that the unionization attempt had no bearing on the layoffs. However, this claim raises questions since it does not account for the subsequent January layoffs that MobileSyrup uncovered. Gibson did not provide additional information on this matter.

In a statement, Ericsson emphasized its long-standing commitment to the Canadian market, noting, “Today’s change will bring together our network management services team in Canada with our global operations.” The company mentioned its efforts to assist affected employees through severance packages and career transition services. Yet, the experiences of those impacted suggest otherwise, with claims that severance offers were minimal, especially for employees with over 20 years of service.

The layoffs follow a failed unionization attempt by employees who sought representation from the United Steelworkers 1944. In July, the union filed a certification application with the Federal Labour Board to represent about 200 of the transitioned employees, with additional filings made for other affected groups just before the layoffs were announced.

The narrative surrounding these layoffs is compounded by recent operational issues within Rogers Wireless since the transition. Reports have surfaced of two significant outages, one affecting wireless services in June and another impacting multiple internet service providers in May. Customers experienced service disruptions during these periods, although Rogers initially denied any outages.

Rogers has been undergoing significant restructuring, having laid off thousands of employees in recent months. In July, around 1,000 Canadians working for Foundever on a Rogers contract were let go, alongside 400 online chat agents in February. These job cuts come despite Rogers’ commitment to create 3,000 jobs in Western Canada as part of its merger with Shaw.

The unfolding situation reflects broader trends in the telecommunications industry, where companies are increasingly outsourcing labor and restructuring operations. As the impact of these layoffs continues to resonate, affected employees are left grappling with uncertainty about their futures and the state of the telecommunications sector in Canada.