Level 3 Realigns Resources
Level 3 is cutting 10 percent of its workforce, possibly up to 600 jobs, in an effort to remove resources from its weaker areas.
“As such, we need to ensure our financial and organizational resources are properly allocated and aligned to take advantage of demand as it develops in consumer-oriented voice and other growth areas. In addition, we are committed to accelerating Level 3’s achievement of positive free cash flow. We believe this action is appropriate in view of these important objectives,” said CEO James Q. Crowe.
Crowe also said the company’s realignment efforts started some time ago.
The job cuts will take place before the end of the month and should save the company between 60 and 70 million dollars.
“It is difficult to predict revenue growth in that area with certainty because it depends on sales to end users by our service provider customers,” Crowe said in a statement.
According to CBS Market Watch, Level 3 is expected to lose 18 cents a share, excluding onetime items, on revenue of around $1 billion, according to the consensus of analysts surveyed by Thomson First Call.
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