Windstream Holdings Inc (NASDAQ:WIN) is laying off 54 employees in Arkansas, including 43 in Little Rock. The company also said an unknown number would be laid off in other areas across the U.S. What that number will be is open for debate; some sources have said the number of layoffs at the telecom company over the coming weeks could be in the hundreds or even near a thousand. Company spokesperson David Avery would not say how many total job cuts Windstream would be making or how much money the company would save as a result of the layoffs.
“We are only providing the local impact and not disclosing the overall number of positions affected or estimated savings from the reductions,” Avery said. “Decisions that affect our people are difficult. We appreciate the contributions of those whose positions are affected and will provide severance benefits.”
As expected, Avery said the layoffs will improve the domestic telecom’s cost structure and enable it to continue to invest in the company’s 150,000-mile network.
“The workforce changes will improve our overall cost structure and enable continued investment in our business. As we position the company for growth, we must ensure that we have the optimal organizational structure in place while making our processes more efficient, reducing redundant systems and delivering robust technology solutions…”
Windstream Reported Net Loss of $102.0 Million in 3rd Quarter
Windstream’s increased third-quarter loss might have something to do with the company’s desire to improve its overall costs structure and announce layoffs.
On November 9, Windstream announced its financial results for the third quarter ended September 30, 2018. Third-quarter revenue increased 11% year-over-year to $1.5 billion. The Little Rock-based company’s third-quarter net loss widened to $102.0 million, or a loss of $0.55 per share, compared to a net loss of $66.0 million, or a loss of $0.72 per share, in the same prior-year period.
During the third quarter, Windstream was hit with approximately $3.0 million in expenses related to damages from Hurricanes Harvey and Irma. On top of that, the company’s ILEC consumer and small business services revenues fell four percent year-over-year to $381.0 million.
Windstream Holdings Made About 200 Job Cuts in 2017
As in 2018, so it was for Windstream in 2017. The company kicked off 2017 with a number of layoffs and continued to its cost-cutting initiatives throughout the year. In January 2017, Windstream announced the departure of 164 employees. The job cuts came from various areas, including engineering, finance, and information technology.
In September 2017, the domestic telecom company cut 24 people from various parts of the company in Rochester, New York. A company spokesperson said Windstream has to be disciplined about its overall cost structure, which means laying off employees.
And in November, Windstream cut 11 jobs from its Hiawatha offices in Iowa. The layoffs were part of consolidation efforts. Windstream also cut jobs at other locations, but the company declined to provide a number.
In 2017, Windstream and many other major telecom companies laid off thousands of employees. Because of cost-cutting initiatives and the need for telecom companies to be more competitive, the layoff momentum will carry on in 2018.
“Windstream Confirms Elimination of 54 Jobs in Arkansas,” Arkansas Business, January 18, 2018.
“Windstream reports third-quarter results,” Windstream Holdings, Inc., November 9, 2017.
“Windstream restructuring cuts 43 Little Rock jobs, no word on impact nationwide,” KATV, January 18, 2018.