A former Rogers Communications (TSX: RCI.B) employee claims the Canadian telecommunications company forced workers to train artificial intelligence systems that would later replace them, according to allegations posted on social media.
The employee, writing on Reddit, said Rogers laid off more than 1,000 customer service agents while instructing staff not to speak with the media about the cuts. The company has publicly acknowledged laying off approximately 400 customer service workers.
Read: Rogers Cuts Customer Service Jobs Across Canada
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“Starting last year we were forced to use this AI summary tool to make ‘our jobs easier’ but the reality all along was they needed us to train the AI,” the former employee wrote.
Rogers attributed the layoffs to a 20% decline in online chat interactions over the past year. Company spokesman Zac Carreiro said in February: “While a small percentage of roles in our customer service team are impacted, we continue to grow and hire people to support our operations across the country.”
The layoffs affected workers across Ontario, British Columbia, Quebec, Alberta and Manitoba, including former Shaw Communications employees integrated after Rogers’ 2023 acquisition.
The Reddit post alleged Rogers reduced the time between customer calls from 30 seconds to 12 seconds and increased workloads without additional pay. It also claimed unpaid commissions for sales staff.
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Canada’s major telecommunications companies have been reducing staff amid technological changes. Bell (TSE: BCE) recently offered buyouts to 1,200 workers and Telus to 700 employees, with both companies citing automation and network efficiency improvements.
Rogers operates a virtual assistant called “Anna” for customer support, similar to AI systems used by competitors. The Globe and Mail reported that “for many companies, artificial intelligence and automation have been a factor in recent work-force reductions, with chatbots being trained to replace workers.”
Rogers cut 2,000 jobs in 2024 and more than 3,000 positions in 2023 following its Shaw merger. The company carries nearly $45 billion in debt. Despite promising to create 3,000 jobs in Western Canada as part of the Shaw acquisition, reports indicate over 3,000 net jobs have been eliminated since the merger closed.
Rogers completed a $7 billion equity investment from Blackstone in June to help reduce debt pressure.
A recent court case required Rogers to produce past severance packages in a wrongful dismissal lawsuit. In 2023, an Ontario court ordered Rogers to hand over information on termination packages for employees with more than 25 years of service who were terminated without cause. Affected workers have up to two years to file wrongful dismissal claims.
Rogers is scheduled to release second-quarter financial results on July 23, which may include updated employee counts.
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