Windstream to Lay Off Workers After Thanksgiving
**Editor’s Note: Click here for a recap of layoffs impacting some of the biggest names doing business in the indirect channel.**
Windstream said late Thursday afternoon that it is cutting 350 jobs on Dec. 1.
It’s a very small percentage of the communications giant’s 13,000-strong workforce, but certainly not insignificant to those who will be out of work. The Little Rock, Arkansas-based service provider – and channel stalwart – said that about one-third of the jobs affected are being eliminated through a voluntary buyout.
The move is billed as an attempt to further “[improve] operations to drive efficiencies.”
“Today’s actions are difficult, but necessary to effectively manage costs,” said Jeff Gardner, president and CEO of Windstream. “While we are eliminating certain roles across the company, we continue to invest in strategic areas of our business to grow revenue, better serve customers and create value for shareholders.”
Windstream expects the changes will save it $20 million per year. The company expects to pay out $7.5 million this quarter for severance and other employee benefits related to the layoffs.
Earlier this month, Windstream reported a 74 percent drop in profit in the third quarter compared to a year earlier. The company faced greater expenses, including merger and integration costs. Revenue also fell, but only slightly. Business services were a bright spot, with data center and managed-services revenue climbing 21 percent.
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