Rogers Employees Face Layoffs After Transition to Ericsson
A significant number of rogers employees who were moved to Ericsson earlier this year are now facing layoffs.This advancement comes on the heels of a unionization effort, with many affected workers alleging that their jobs are being outsourced.
In April, Rogers informed around 400 technical staff and managers that they had two options: accept severance packages or sign new contracts with Ericsson. The latter was set to take over as a contractor for Rogers,managing the carrier's wireless network. Though, it appears that many of these employees will soon find themselves without jobs, despite assurances from Rogers' CTO Mark Kennedy that the transition would not lead to job losses.
Details Emerge About Layoff Plans
An employee impacted by these changes reached out with information indicating that approximately 360 out of the original 400 workers will be laid off in two phases. The first group is expected to remain until October 31, while the second group will stay on until January 31. during meetings held on September 8, some employees were reportedly told they would need to assist in transitioning their roles to new hires based in India.
This former employee clarified that artificial intelligence was not a factor in these layoffs; instead, it seems the primary motivation is reducing labor costs.
Ericsson Responds Amid Confusion
An Ericsson spokesperson named Nathan Gibson stated via email that reports about the number of layoffs were “not accurate.” He referenced an article from The Globe and Mail, which mentioned only about 100 layoffs scheduled for October 31. Gibson also claimed that attempts at unionization did not influence their decision regarding layoffs.
However, The Globe’s report only addressed those October layoffs and did not mention any plans for January cuts as revealed by other sources. When asked about this discrepancy regarding January's layoff plans,gibson did not provide further details but shared a statement from Ericsson:
“For more than 70 years,Ericsson has been committed to serving our customers in Canada and we continue to invest here… We are mindful of the impact on employees and are working to assist them as they make the transition out of the company.”
A Different Perspective from Affected Employees
The impacted worker expressed dissatisfaction with severance packages offered by Ericsson—describing them as “the bare minimum,” especially considering many had dedicated over two decades at Rogers. Additionally, there have been claims suggesting operational improvements promised by Ericsson have yet to materialize; notably, there have been reports of major outages affecting Rogers Wireless since this transition took place.
MobileSyrup previously reported on a significant outage affecting Rogers' wireless services back in June. There was also another incident involving multiple internet service providers experiencing disruptions in May—though at that time Rogers denied any issues despite customer complaints about slow speeds or complete loss of service.
The Unionization Effort Adds Complexity
The globe’s coverage adds another layer by noting nearly half of those transferred from Rogers attempted union formation shortly after moving under Ericsson's umbrella. The united Steelworkers Local filed an request with canada’s Federal Labor Board back in July seeking depiction for around 200 employees involved. Recently filed documents included additional requests covering another group affected by recent job cuts.
No response came from Gibson when asked why such drastic measures were taken just months after transferring roles between companies.
Lack Of Clarity From Both companies regarding Layoffs
Bafflingly enough, both companies have remained tight-lipped concerning inquiries surrounding these recent job losses; instead directing questions towards each other while pointing back toward The Globe’s sparse reporting focused solely on October's figures without addressing future implications or potential impacts stemming into next year either way!
A Broader Context Of Job Cuts At Rogers
This situation unfolds against a backdrop where thousands have already lost their positions within Roger’s workforce recently alone! In July alone saw roughly one thousand canadians working through Foundever contracts face similar fates across tech support roles among others! earlier this year saw approximately four hundred online chat agents let go too following previous announcements indicating over three thousand total jobs shed post-Shaw merger completion last year!
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