Windstream announces 300 to 400 management job cuts, no effect to Midtown
Posted at: 05/31/2012 11:50 AM
| Updated at: 05/31/2012 7:32 PM
By: Berkeley Brean | WHEC.com
Windstream, the company that bought PAETEC, says it plans to cut 300 to 400 managerial jobs by the end of September (end of the 3rd quarter).
Here's what Windstream says on it's website:
Windstream Corp. (Nasdaq: WIN) is restructuring its management ranks to increase the efficiency of decision-making and position the company for continued success. The company expects to eliminate approximately 375-400 management positions, or roughly 3 percent of its total workforce of 14,500, as part of the restructuring, which is expected to be complete in the third quarter.
"Windstream has grown rapidly through acquisition, and it is crucial that our management structure be as simple and as responsive to customers as possible as we continue to build this company for long-term success," said Jeff Gardner, president and CEO of Windstream.
"We began initial planning for this management review last December. It will make us more competitive and improve our ability to continue growing while delivering the best possible experience to our customers as well as the greatest value to our shareholders," Gardner said.
Windstream says the cuts will save the company anywhere from $30 to $40 million dollars.
We talked to the president of Brighton Securities, George Conboy, to help put these cut into perspective.
"When windstream acquired PAETEC in Rochester, PAETEC was its own independent public company, with a board of directors, a CEO, legal department, marketing, finance, you name it. Windstream already had many of these services at its corporate headquarters," George Conboy said.
Conboy says it was natural to expect these cuts.
"Some job cuts are immediate when there's a merger. Some come later once there's been a chance to integrate the two companies and really find out how the companies mesh. And that's what's happening now," he said.
When we contacted Windstream officials via email, they responded, writing, "It's too early in the process to know the locations of the positions that will be affected. The review does not affect our plans to open an office in Midtown."
Windstream's "net income" in the 1st quarter (Jan-March) "doubled" but because the profits did not meet Wall Street expectations, the stock fell. Click here to read the story from MSNBC.com.