Jun, 2001 : Level 3 Slashes Jobs, Cuts Revenue Outlook
📅 - Level 3 Communications announced today that the company would eliminate a quarter of its workforce and scale back revenue expectations in order to address "the current weakness in general market conditions."
The Colorado-based company, which specializes in providing Internet services like Web hosting, broadband transport and IP services, said it would cut its global work force by 1,400 and cut projections for sales and expenditures for the remainder of fiscal 2001 and fiscal 2002. The company also said that it still expects second-quarter results to be fairly close to previous targets.
"Although we did exceed expectations for the first quarter, and we expect to be substantially in line with our previous second quarter projections, the continuing slowdown in the economy is significantly impacting our business,'' said James Q. Crowe, CEO of Level 3. "Over the past two months, we have experienced a reduction in the growth of recurring revenue. As a result, we have updated our business outlook consistent with our views regarding the severity and duration of the economic slowdown. While it is difficult to predict with any certainty, we, like many industry observers, anticipate a recovery in late 2001.''
Investors were not taking the news well in early trading, with shares in Level 3 off the mark by $1.23, or more than 16%, at $6.39.
The Colorado-based company, which specializes in providing Internet services like Web hosting, broadband transport and IP services, said it would cut its global work force by 1,400 and cut projections for sales and expenditures for the remainder of fiscal 2001 and fiscal 2002. The company also said that it still expects second-quarter results to be fairly close to previous targets.
"Although we did exceed expectations for the first quarter, and we expect to be substantially in line with our previous second quarter projections, the continuing slowdown in the economy is significantly impacting our business,'' said James Q. Crowe, CEO of Level 3. "Over the past two months, we have experienced a reduction in the growth of recurring revenue. As a result, we have updated our business outlook consistent with our views regarding the severity and duration of the economic slowdown. While it is difficult to predict with any certainty, we, like many industry observers, anticipate a recovery in late 2001.''
Investors were not taking the news well in early trading, with shares in Level 3 off the mark by $1.23, or more than 16%, at $6.39.
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URL source: http://www.thewhir.com/marketwatch/level3618.cfm
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