BCE swings ax at phone division

Canadian media group cutting 2,500 jobs

TORONTO -- Canadian media group BCE said Monday that it will ax 2,500 management jobs at phone division Bell Canada, or 6% of the work force, in the wake of its CAN$34.8 billion ($34.5 million) buyout by a domestic pension fund and its U.S. equity partners.

BCE, which also has a stake in national TV network CTV and runs direct-broadcast-satellite service Bell ExpressVu, said that the management cuts will save $300 million ($295 million) in annual operating expenses.

As part of Canada's largest-ever leveraged buyout, BCE was acquired by the Ontario Teachers' Pension Plan and U.S. partners Providence Equity Partners, Madison Dearborn Partners and Merrill Lynch.