Level 3 culls 1,400 staff
Cuts sales forecasts
Level 3 Communications is canning 1,400 workers and has lowered its 2001 sales estimates.
The network provider now anticipates 2001 revenues of $1.5 billion, down on earlier projections of $1.6 billion to $1.7 billion.
"The continuing slowdown in the economy is significantly impacting our business," said CEO James Crowe. The company blamed bad payers as a major problem and noted 20 per cent of its total revenue base is "at risk" of going titsup.
As for the job cuts: 820 will go in the US; 550 in Europe; and 30 in Asia. The company employed 5,900 before the cuts. It anticipates a one-time charge of $100 million in the second quarter related to the staff reductions.
If Level 3's top brass posted a company memo saying the job cuts hurt them more than it hurt the people out on their ear, or couched the redundancies in some enraging form of management speak then let us know. ®