Troubled Qwest lays off 4,000

Qwest Communications is to lay off 4,000 workers and has revised its earning expectations downwards for this year.

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.

Read more on IT jobs and recruitment

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

  • How do I size a UPS unit?

    Your data center UPS sizing needs are dependent on a variety of factors. Develop configurations and determine the estimated UPS ...

  • How to enhance FTP server security

    If you still use FTP servers in your organization, use IP address whitelists, login restrictions and data encryption -- and just ...

  • 3 ways to approach cloud bursting

    With different cloud bursting techniques and tools from Amazon, Zerto, VMware and Oracle, admins can bolster cloud connections ...

SearchDataManagement

Close