Oct, 2001 : XO Cuts Jobs, Comments on 3Q Expectations

📅 October 4, 2001 - XO Communications, Inc. (xo.com 👉 Total Reviews: 5
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👈 Official Responses: 0), said that it remains intenton achieving EBITDA positive status in the first half of 2002 and will trimexpenses by reducing its workforce by approximately 600 employeesrepresenting about eight percent of the total XO employee base.

Additionally, XO reiterated that it would meet previously announcedestimates for the company's third quarter 2001 revenue and EBITDA.
The workforce reduction will occur primarily in staff support areas and willnot have a significant impact on XO's sales or customer care organizationsor on its front-line provisioning positions responsible for installing newcustomers or services on the XO network.
"We are determined to position XO to survive the current challenges intoday's economy. We deeply regret taking this action given the impact onsome of our employees, but we are convinced it can be accomplished withoutaffecting our ability to win customers and meet their telecommunicationsneeds, " said XO chairman and CEO Dan Akerson. "Over the past eighteenmonths, XO has been transitioning from a network construction posture to anoperational organization that is running an integrated national/localnetwork. The reductions reflect this transition and are expected to put thecompany more in line with mature operational productivity metrics."
Several of the targeted areas impacted within XO include its new marketconstruction team that no longer requires the same staffing levels resourcesdue to the completion of substantial portions of the XOs network. Otherreductions include portions of the company's IT organization which hasrecently completed the development of a number of business systems withinXO.
XO will provide financial details associated with the reduction and itsfinancial operations for the third quarter on its quarterly resultsconference call in late Oct.