Qwest evaluates business to save costs

Qwest Communications International announced it may have to sell off divisions and product lines in an attempt to save as much as...

Qwest Communications International announced it may have to sell off divisions and product lines in an attempt to save as much as $1bn (£0.65bn).

The company said that it was "looking at opportunities to reduce payments associated with certain underperforming or non-strategic product lines and operating units".

Qwest is evaluating the status of its entire business, looking at its product lines and divisions, and assessing whether they are profitable or can be made to be profitable, said Steve Hammack, a spokesman for Qwest. If the company determines that products or divisions cannot be made profitable, it could sell those divisions to other companies, he said.

The company is struggling through difficult financial times and government investigations. Qwest recently posted a net loss of $1.14bn (£0.74bn) for the second quarter of 2002.

The company is also being investigated by both the Securities and Exchange Commission (SEC) and the US Attorney's Office over accounting practices. The company said in late July that it has booked certain sales of optical capacity assets incorrectly in 1999, 2000 and 2001.

Qwest has yet to submit the certification of its financial results required by the SEC of nearly 1,000 major corporations because of the investigations, Hammack said. Before the company certifies its results, it has to complete a restatement of its finances for 1999 through 2001.

No decisions have yet been made about whether the company will make the cost-saving moves, though Qwest did sell its application service provider business to Corio, Hammack said.

Hammack also declined to say whether such cost savings might be achieved through job cuts.

"Our workforce [size] is going to be based on the demand for service," he said.

Read more on Business applications

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close