Telus revises 2023 guidance, citing technology sector cost-cutting

VANCOUVER — Telus Corp. revised downward its annual guidance for 2023, citing demand pressures as the technology sector looks to cut costs. 

The Vancouver-based company says it revised its guidance as a result of Telus International’s updated full-year annual outlook.

As a result, Telus says it’s targeting consolidated operating revenue growth of 9.5 to 11.5 per cent, down from 11 to 14 per cent. 

Telus, which is the controlling shareholder of Telus International, says the spun-out company’s lower revenue guidance is due to anticipated demand challenges from certain clients in its technology vertical. 

Darren Entwistle, chair of Telus International’s board of directors, says the company has faced unprecedented and severe global pressures, particularly within technology as clients aggressively address cost structures, including through successive layoffs. 

Entwistle, who is also president and CEO of Telus, says Telus International in response is focused on its own cost structure, including reducing its own staff levels and deploying  automation and artificial intelligence.

This report by The Canadian Press was first published July 13, 2023.

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The Canadian Press