Sep 11, 2001 : Qwest Cuts Jobs, Sales Estimate
📅 - Qwest Communications (qwest.com 👉 Total Reviews: 1
🙌 Average Rating: 1 / 10
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👎 Bad Reviews: 1
👈 Official Responses: 0 -> lumen.com), a leading local and longdistance phone company, announced on Monday that slashed its revenueprojections for the rest of 2001 and said it would cut six percent of itsworkforce as the carrier struggles to deal with the current IT economicdownturn.
Qwest said it expects full-year revenue of $20.5 billion, down from theprevious estimate of $21.3 billion to $21.7 billion. For 2002, Qwest simplysaid it expects revenue to grow in the "high single digits." Earlier, thecompany was experiencing growth close to 15 percent.
In an attempt to reduce costs, Qwest said it will lay off 4,000 of its66,000 employees. It also said it will trim capital expenditures to $8.5billion from $8.8 billion for 2001, and to $5.5 billion from $7.5 billion in2002
While these reductions will hurt equipment vendors that supply Qwest, thecompany said the actions will enable it to cashflow positive in the secondquarter of 2002, which is two quarters ahead of previous forecasts.
In New York Stock Exchange trading, shares of Qwest set a 52-week low of$17.89 early Monday morning, but showed a strong recovery, closing thesession up $1.76 to $19.90, a 9.7 percent advance.
Qwest gets most of its revenue from local phone service in 14 Westernstates. Last year, the company used its high stock price to purchase BabyBell U S West, adding millions of customers in the process. Qwest alsooperates a high-speed long-distance data network, although the business hasdeclined as smaller carriers go out of business and larger phone companiessuch as WorldCom scale back on purchases.
"Our wholesale customers are those people," Nacchio said in a conferencecall with analysts. He said that customers increasingly are buying serviceson a monthly instead of yearly bases to keep their own costs manageable.Still, he asserted that Qwest's business is fundamentally sound and willimprove along with the economy. "Tides come in, tides go out, during arecession," he said. "It's about the economy."
🙌 Average Rating: 1 / 10
👍 Good Reviews: 0
👎 Bad Reviews: 1
👈 Official Responses: 0 -> lumen.com), a leading local and longdistance phone company, announced on Monday that slashed its revenueprojections for the rest of 2001 and said it would cut six percent of itsworkforce as the carrier struggles to deal with the current IT economicdownturn.
Qwest said it expects full-year revenue of $20.5 billion, down from theprevious estimate of $21.3 billion to $21.7 billion. For 2002, Qwest simplysaid it expects revenue to grow in the "high single digits." Earlier, thecompany was experiencing growth close to 15 percent.
In an attempt to reduce costs, Qwest said it will lay off 4,000 of its66,000 employees. It also said it will trim capital expenditures to $8.5billion from $8.8 billion for 2001, and to $5.5 billion from $7.5 billion in2002
While these reductions will hurt equipment vendors that supply Qwest, thecompany said the actions will enable it to cashflow positive in the secondquarter of 2002, which is two quarters ahead of previous forecasts.
In New York Stock Exchange trading, shares of Qwest set a 52-week low of$17.89 early Monday morning, but showed a strong recovery, closing thesession up $1.76 to $19.90, a 9.7 percent advance.
Qwest gets most of its revenue from local phone service in 14 Westernstates. Last year, the company used its high stock price to purchase BabyBell U S West, adding millions of customers in the process. Qwest alsooperates a high-speed long-distance data network, although the business hasdeclined as smaller carriers go out of business and larger phone companiessuch as WorldCom scale back on purchases.
"Our wholesale customers are those people," Nacchio said in a conferencecall with analysts. He said that customers increasingly are buying serviceson a monthly instead of yearly bases to keep their own costs manageable.Still, he asserted that Qwest's business is fundamentally sound and willimprove along with the economy. "Tides come in, tides go out, during arecession," he said. "It's about the economy."
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Company: qwest [qwest.com -> lumen.com]
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