Nov, 2001 : Broadwing Lays Off 900, Announces Reorganization Plan

📅 November 30, 2001 - Data and voice communications firm Broadwing Inc. unveiled a restructuring plan yesterday designed to realign the company's focus.
The company said it would lay off 900 employees, or 15 per cent of its workforce, and consolidate customers from its 11 hosting centers into three core facilities.
Broadwing also said it would eliminate a number of management layers, and created the new position of Chief Operating Officer. The company appointed Kevin Mooney, the company's Executive Vice President and CFO, to fill the new role. Mooney will be responsible for all operations including, sales, network operations, information technology, and customer service.
"These changes will move our company closer to our customers, speed our decision-making, streamline our operations by removing layers of management, and better align our costs against a changing telecom landscape,'' said Rick Ellenberger, Broadwing's President and CEO. "I am confident that Kevin Mooney's skills, experience, and leadership are perfectly suited to leverage our opportunities in this economic environment."
Broadwing said it expects to incur a Q4 charge of between $250 million to $300 million because of managerial restructuring and the write-down of various other assets.
``These changes will strengthen our focus on adding profitable customers to our network and providing them unparalleled quality and service," Ellenberger said. "Consequently, Broadwing is also well positioned for future success and to achieve our goal of becoming free cash flow positive by mid-year 2002."
Broadwing currently maintains a fully deployed, all-optical network spanning more than 18,500 miles. Shares in the company were down 11 cents to $10.09 heading in to Friday afternoon.