Rogers Communications Offers Buyouts to 50% Workforce as Debt Hits $34.7B, Capex Cut 30% – The Globe and Mail

Rogers Communications has offered voluntary buyouts to roughly 50% of its 25,000 employees as the Canadian telecom giant adjusts to slowing revenue growth and a heavy debt load of $34.7 billion. The move comes alongside plans to cut capital expenditures by up to $1.2 billion, or 30%, in 2026.

Rogers Communications: Workforce Reduction Strategy

The Toronto-based telecom operator confirmed that voluntary departure packages will be extended to about half of its workforce across multiple divisions. The initiative excludes employees of Maple Leaf Sports & Entertainment (MLSE), as well as on-air talent, unionized staff, Sportsnet employees, and Toronto Blue Jays personnel.

The company did not specify a target for workforce reduction, noting that buyout programs typically result in only a portion of eligible employees opting to leave. A spokesperson said the move is aimed at aligning costs with current business conditions while offering employees flexibility in deciding their future.

Rogers ended 2025 with approximately 25,000 employees, including about 3,000 MLSE staff who are not part of the buyout programme. The initiative reflects a broader trend in the telecom sector, where companies are streamlining operations amid weaker growth dynamics.

In addition to workforce measures, Rogers plans to reduce its capital spending by as much as $1.2 billion in 2026 compared to the previous year. This represents a 30% decline following a period of elevated investment in infrastructure, acquisitions, and network expansion.

The company cited a challenging regulatory environment and evolving market conditions as key reasons for scaling back spending. Analysts noted that while such reductions highlight industry pressures, they also signal management’s focus on improving cost efficiency.

The telecom sector has faced declining pricing for mobile plans and slower population growth, both of which have constrained revenue expansion. As a result, companies are reassessing investment levels while maintaining network performance.

Debt and Acquisition Impact

Rogers reported long-term debt of $34.7 billion as of March 31, reflecting years of aggressive expansion and deal-making. The company acquired Shaw Communications in a $20 billion transaction in 2023, significantly increasing its market presence but also adding to its financial obligations.

Subsequently, Rogers purchased Bell’s stake in MLSE for $4.7 billion and renewed its National Hockey League broadcasting rights in a deal valued at $11 billion. The company is also expected to acquire the remaining stake in MLSE later this year, with analysts estimating the cost could exceed $4 billion.

These transactions have strengthened Rogers’ position in telecom, media, and sports, but have also intensified pressure to manage debt levels and maintain financial flexibility.

To address its debt burden, Rogers sold a minority stake in its wireless infrastructure assets for $7 billion in 2025. The company is also exploring the sale of a minority interest in its combined sports portfolio, which includes MLSE and other media assets.

Such measures are part of a broader strategy to rebalance the balance sheet while continuing to invest selectively in core operations. The company has emphasized that network development remains a priority, even as overall spending declines.

Previous cost-cutting actions included layoffs in customer support roles and restructuring arrangements involving approximately 400 technicians and managers, who were offered severance packages or transitioned to external contractor roles.

Industry Context and Commitments

Rogers’ actions mirror similar steps taken by competitors BCE Inc. and Telus Corp., both of which have reduced headcount and introduced buyout programs in response to industry-wide pressures. The sector is grappling with high capital intensity, regulatory challenges, and shifting consumer demand.

The company also faces scrutiny over hiring commitments made during its acquisition of Shaw. Rogers pledged to create 3,000 jobs in Western Canada within five years and maintain them for a decade. As of March, it had hired 2,600 employees under that commitment.

While the company stated that ongoing network investments would continue to support employment, it has not clarified whether the current cost-cutting measures will impact its ability to meet those obligations.

Rogers’ latest moves highlight the balancing act facing telecom operators: managing debt and costs while sustaining long-term growth in a competitive and capital-intensive industry.