Qwest Communications is to lay off 4,000 workers and has revised
its earning expectations downwards for this year.
In a statement issued on 10 September, the company cited the
ongoing economic slump as the reason for its losses.
By the end of the first quarter of 2002, the US broadband and local
telecommunication service provider will cut its workforce from
66,000 to 62,000. An additional 1,000 staff positions will be
eliminated from departments such as public relations and legal,
according to Tyler Gronbach, Qwest's vice-president for corporate
communications.
The company will also attempt to cut overhead costs through the
hiring of 1,000 mostly commission-based salespeople, Tyler
said.
Qwest now expects revenue of about $20.5bn (£14bn) for the fiscal
year 2001; a downgrade from second-quarter estimates of $21.3bn to
$21.5bn. Earnings before interest, taxes, depreciation and
amortisation will decrease to about $8bn, down from $8.5bn to
$8.6bn, the company said.
Additionally, Qwest expects the 2002 capital budget to drop almost
$2bn, from $7.5bn to $5.5bn, mostly through cost cutting and
reductions in capital purchases, Tyler said.