Telus Faces Job Cuts Amidst Growth in Digital Services Sector

Marcus Wong, Economy & Markets Analyst (Toronto)
5 Min Read
⏱️ 3 min read

In a contrasting move, Telus Corp., the Vancouver-based telecommunications giant, reported a workforce increase of nearly 5,000 employees in 2025, yet simultaneously shed 2,800 jobs within Canada. This trend underscores the ongoing restructuring in the telecom industry as companies adapt to new technologies while aiming to cut costs and manage debt.

Workforce Composition and Growth

According to Telus’s recently released annual report, the company ended 2025 with a total of 111,500 employees, up from 106,800 in 2024, marking a 4.5 per cent rise. Notably, 85,100 of those employees are part of Telus Digital, the firm’s technology outsourcing division that focuses on artificial intelligence and data services. This segment alone welcomed 6,100 new employees over the past year, reflecting a robust demand for AI-driven customer service solutions, as highlighted by Telus spokesperson Steve Beisswanger.

However, it is essential to note that while Telus expands in certain areas, it has simultaneously contracted in others. The remaining workforce of 26,400, which includes those involved in traditional telecom services and Telus Health, experienced a reduction of 1,400 jobs.

Strategic Shifts and Acquisitions

The wave of job reductions in Canada aligns with a broader trend among Canada’s major telecom firms, which are streamlining operations to enhance efficiency and reduce expenses. Telus’s job losses have been somewhat mitigated by strategic acquisitions, such as the purchase of Workplace Options, an American employee health business, last May. Prior to the acquisition, Workplace Options employed over 1,300 staff, suggesting that the overall job decline within Telus could have been more severe without this addition.

As of 2025, the number of Telus employees in Canada decreased to 25,200, a significant drop from 35 per cent of the workforce five years ago to just 22 per cent today. This shift in workforce demographics highlights the company’s growing international focus, as it seeks to expand its global presence.

Financial Strategies and Future Plans

Beisswanger indicated that Telus is currently transferring leadership responsibilities for its digital operations back to Canadian management in a bid to unlock synergies and drive international revenue growth. The reintegration of Telus Digital, which was spun off through an initial public offering in 2021, is expected to yield annual cash savings between £150 million and £200 million, although no specific timeline has been provided for these savings.

The company is also reassessing its European operations as part of a wider consolidation strategy, a move that reflects the challenging economic landscape within the telecom sector, including declining mobile pricing in Canada.

Ongoing Voluntary Buyouts

In line with its restructuring efforts, Telus has continued its voluntary buyout programme, offering severance packages to approximately 700 employees—matching the number from the previous year. These buyouts target technicians involved in installation and repair, as well as call-centre agents managing business accounts. This step illustrates the rapid transformation of the telecom industry, driven by increasing customer demand for self-service options.

Other major players in the telecom sector, such as Bell Canada’s parent company BCE Inc. and Rogers Communications, have also reported significant changes in their workforce. Bell recorded a net loss of 1,700 jobs for the second consecutive year, while Rogers announced an increase of 1,000 employees, bolstered by its acquisition of a stake in Maple Leaf Sports & Entertainment.

Why it Matters

The dynamics unfolding at Telus reflect broader trends in the telecommunications industry, where companies are grappling with the dual challenge of innovation and cost management. As the demand for digital services surges, traditional telecom roles are being re-evaluated, resulting in significant workforce shifts. This transformation not only impacts employees but also signifies a pivotal moment for the industry, highlighting the delicate balance between technological advancement and workforce stability in a rapidly changing economic landscape.

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