CenturyLink confirmed that it plans to reduce its workforce by up to 8% as part of a broad cost-cutting effort.
The company said it’s approaching those cuts initially on a voluntary basis, and expects to complete the move by December 16.
USA Today reported earlier that CenturyLink has about 43,000 employees, meaning that the planned cuts could impact about 3,500 employees.
The paper also cited a memo from CenturyLink CEO Glen Post noting that that the cuts and a realignment of the company’s fundamental cost structure are coming as the telco is pressured by a “decline in our legacy revenues” that “creates a $600 million negative impact on our business each year.”
CenturyLink ended Q2 with 11.41 million access lines, down from 12.1 million in the year-ago period, with broadband subs dropping 65,000, to 5.99 million.
CenturyLink, however, did end Q2 with 311,000 Prism TV subs, up from 258,000 in the year-ago quarter. It’s also working on new OTT products, including skinny bundles that will include the local broadcast TV networks.
CenturyLink issued this statement about the coming workforce reduction:
“CenturyLink, as all businesses, continually evaluates its cost structure and business practices and adjusts its operations to meet the needs of the business. After careful consideration, CenturyLink has made the difficult decision to reduce its employee related costs. We are approaching this initially on a voluntary basis.
Employees who take voluntary severance packages can participate in outplacement assistance programs, subject to terms of any applicable collective bargaining agreement, including career planning, resume preparation, marketing plan development, interview preparation and job search method training.
We are doing everything we can to minimize the impact to employees by reducing business-related expenses, but we anticipate the employee impact will be about 7 – 8 percent.
Most of these changes are expected to be fully implemented by December 16, 2016, although there may be exceptions due to the needs of the business.”