MONTREAL—Microcell Telecommunications laid off 180 employees in its offices across Canada as part of its strategic reorganization following the recent completion of its financing.
The layoffs follow a previous “adjustment” last fall when the company laid off 194 employees to adjust its work force to the requirements of its 2002-2003 operating plan.
“These adjustments reflect our new strategic choices and address the evolving realities of the Canadian wireless market,” said Andre Tremblay, president and chief executive officer (CEO) of Microcell. “Although we successfully completed our funding activities in December, this step is still necessary to ensure we maintain our competitiveness.”
Microcell announced last month it had raised C$450.6 million (US$312.2 million) through equity financing and bank commitments, which the company said it expects to cover capital needs until the end of 2003, at which point it should generate profit from its operations.
“While it’s always a hard decision to lay off employees, we firmly believe that these measures, coupled with our solid financial situation, will help us maintain our enviable place in the Canadian wireless market and ensure our future growth,” Tremblay added.
Microcell noted it will offer laid-off employees severance packages in line with industry best practices and will provide outplacement services.
