Apr, 2001 : Level 3 to cut work force by six per cent

📅 April 4, 2001 - Data communications service provider Level 3 Communications announced on Tuesday that it plans to cut about six per cent of its workforce, or 325 employees, in the next few weeks.

But according to Level 3, the layoffs are not just the latest in a long line of similar cutbacks by hardware manufacturers and high-tech companies. The company says the reduction is part of a shift in focus toward the higher growth segments of its business, and assured that its total employment will grow during the year through hiring in sales, provisioning and network operations.
Level 3 admitted that the current market conditions played a part in the decision, driving the company to make the cuts quickly, rather than over a longer period of time. But it explained that cutting jobs is part of shifting gears for the company, the transition from building a network to running one.
Level 3 stressed that while it is being financially careful in some areas, it is still in a strong position. The company showed $4.3 billion in cash on its balance sheet in December, and $5.3 billion, including existing lines of credit.
Analysts, however, point out that layoffs are rarely, if ever, a sign of booming business. During trading on Tuesday, Level 3's stock fell $3 to $12.06.