TELUS Corporation has offered voluntary severance packages to almost 700 Canadian employees, including more than 500 members of the United Steelworkers union, with a deadline of January 21. The program targets workers in Telus Business Solutions operations across British Columbia, Alberta, Ontario and Quebec.
This offer follows a decade‑long pattern of workforce reductions at TELUS, with previous voluntary severance programs announced in February 2025 and May 2023. The company is using the program to trim headcount, lower operating costs and realign its workforce with its strategic focus on artificial‑intelligence and digital‑transformation initiatives.
The reduction in staff may place pressure on TELUS’s customer‑service and business‑solutions capabilities, but management has framed the move as a necessary step to maintain flexibility and reduce operating expenses while investing in high‑growth technology areas.
Financially, TELUS carries a high leverage profile, with a debt‑to‑equity ratio of 183.41 and modest profitability, reflected in a net margin of 4.6% and a return on equity of 5.8%. The voluntary severance program is part of a broader effort to deleverage and sustain the company’s dividend‑growth program by cutting headcount and associated costs.
Analysts have issued mixed commentary on the announcement. Several major research houses have downgraded the stock and cut price targets, citing the company’s high leverage and modest profitability, while a National Bank upgrade has provided a counterpoint. The consensus rating remains a “Moderate Buy,” and investors are monitoring how the workforce reduction will affect service delivery and the company’s ability to grow its AI and digital services.
The voluntary severance program represents a significant operational shift that balances cost control with investment in future‑growth areas, while managing the workforce to support TELUS’s digital transformation agenda.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.