Shaw Communications Inc. (TSX:SJR.B) (TSX:SJR.PR.A) (TSX:SJR.PR.B)
(NYSE:SJR) (TSXV:SJR.A) today announced the results of its
voluntary departure program (“VDP”), the first step in a multi-year
Total Business Transformation (“TBT”) initiative, designed to
reinvent its operating model to better meet the changing tastes and
expectations of consumers and businesses.
“Shaw has built decades of success by being a company that
adapts well and shapes its future. We determine how we can improve,
choose a path, and act on it. We are making the necessary changes
to better serve our customers through a lean, integrated and more
agile workforce,” said Jay Mehr, President, Shaw
Communications.
Approximately 3,300 employees elected to participate in the VDP,
which represents 25% of the company’s total workforce. As
anticipated, the majority of employees who have chosen to accept
the voluntary departure packages are in areas of Shaw’s business
that can be further optimized through the use of technology and a
more efficient service delivery model. “The actual uptake falls
within scenarios considered and therefore we expect the business to
continue to operate in the normal course with no impact on customer
experience,” Mr. Mehr said.
As part of the program design, the majority of customer-facing
employees (i.e., Customer Care, Retail, Sales) were not eligible to
participate in the VDP and – as a key component of the program –
Shaw has control over the timing of employee departures across the
company to ensure they are actively managed through an orderly
transition over the next 18 months.
In connection with various TBT activities to-date, including the
VDP, the company expects to incur a restructuring charge of
approximately $450 million in the second quarter of fiscal 2018,
primarily related to severance and other employee related costs, as
well as additional expenses associated with the TBT initiative. The
anticipated annualized savings, which include reductions in
operating expenses and capital expenditures (i.e. capitalized
labour), related to the VDP is expected to be approximately $225
million, to be fully realized in fiscal 2020. The company expects
the savings to be equally weighted between operating expenses and
capital expenditures. While the restructuring charge will be
recognized in the second quarter fiscal 2018 results, the actual
timing of employee payments related to the charge will occur over
an 18-month period, starting in April 2018.
“We made the difficult but necessary decision to modernize our
wireline and satellite businesses by offering a generous package to
those people who helped us build Shaw and chose not to join us in
this transformative period of growth,” Mr. Mehr said. “We thank all
our employees for the contributions they have made to this
organization and we thank each of them for their dedication to our
customers.”
The company remains in the early stages of Total Business
Transformation and additional details will be provided as progress
is made. Specific information regarding the timing of anticipated
savings related to the VDP, will be discussed in conjunction with
the release of our second quarter fiscal 2018 results on April 12,
2018.
About ShawShaw Communications Inc. is a leading
Canadian connectivity company. The Wireline division consists of
Consumer and Business services. Consumer serves residential
customers with broadband Internet, Shaw Go WiFi, video and digital
phone. Business provides business customers with Internet, data,
WiFi, digital phone, and video services. The Wireless division
provides wireless voice and data services through an expanding and
improving mobile wireless network infrastructure.
Shaw is traded on the Toronto and New York stock
exchanges and is included in the S&P/TSX 60 Index (Symbol: TSX
- SJR.B, SJR.PR.A, SJR.PR.B, NYSE – SJR, and TSXV – SJR.A). For
more information, please visit www.shaw.ca.
For investor inquiries, please contact:Shaw
Communications Inc.Investor Relations
investor.relations@sjrb.ca
www.shaw.ca
For media inquiries, please contact:Shaw
Communications Inc.Chethan Lakshman, VP External Affairs(403)
930-8488chethan.lakshman@sjrb.ca
Caution Regarding Forward-Looking
Statements
Statements included in this news release that
are not historic constitute forward looking statements within the
meaning of applicable securities laws. Such statements include, but
are not limited to: statements related to the restructuring charges
(related to severance and employee related costs) expected to be
incurred and timing of such charges, statements related to the
anticipated annual savings related to the VDP (including reductions
in operating and capital expenditures), statements related to the
impact that the employee exits will have on Shaw’s business
operations, and statements related to timing and total savings at
the completion of the TBT initiative. These statements are based on
assumptions made by Shaw that it believes are appropriate and
reasonable in the circumstances, including without limitation,
there is no significant market disruption or other significant
changes in economic conditions, competition or regulation; the TBT
initiative will be completed in a timely and cost effective manner
to yield the expected results and benefits; and Shaw is able to
complete the employee exits with minimal impact on business
operations within the anticipated timeframes and for the budgeted
amounts; that Shaw’s Total Business Transformation initiative will
result in a leaner, more integrated and agile company improving
efficiencies and execution to better meet its consumers’ needs and
expectations (including the products and services offered to its
customers). Undue reliance should not be placed on any
forward-looking statement. Many factors, including those not within
Shaw’s control, may cause actual results to be materially different
from the views expressed or implied by such forward-looking
statements, including but not limited to: general economic, market
and business conditions; changes in the competitive environment in
the markets in which Shaw operates and from the development of new
markets for emerging technologies; industry trends, technological
developments, and other changing conditions in the entertainment,
information and communications industries; Shaw’s ability to
execute its strategic plans and capital projects; Shaw’s ability to
close any transactions; Shaw’s ability to achieve cost
efficiencies; technology, cyber security and reputational risks;
opportunities that may be presented to and pursued by Shaw; changes
in laws, regulations and decisions by regulators that affect Shaw
or the markets in which it operates; Shaw’s status as a holding
company with separate operating subsidiaries; and other factors
described in Shaw’s 2017 Annual Report under the heading “Known
events, trends, risks and uncertainties.”
The foregoing is not an exhaustive list of all
possible factors. Should one or more of these risks materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, actual results may vary materially from those described
herein.
This news release provides certain
future-oriented financial information as Shaw believes that certain
investors, analysts and others utilize this and other
forward-looking information in order to assess Shaw's expected
operational and financial performance and as an indicator of its
ability to service debt and pay dividends to shareholders. Such
financial information may not be appropriate for this or other
purposes.
Any forward-looking statements contained herein
speak only as of the date of this news release. Except as required
by law, Shaw disclaims any obligation to update any forward-looking
statement.
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