ICG to lay off 500

(Telephony) ICG Communications, the competitive local exchange carrier (CLEC) that is reorganizing after filing for bankruptcy in November, plans to lay off approximately 500 employees by the end of the month.

The cutback will leave ICG with about 1700 employees nationwide.

ICG has not yet determined who will be let go, said a company spokeswoman. Rather, senior executives will work with managers throughout the company to determine the layoffs. Consequently, neither the locations of nor the types of workers affected have been concluded.

According to the spokeswoman, the decision was made because the layoffs will both save money and reflect the company’s scaled back business plan.

“The workforce reduction is based on our commitment to profitability as well as executing our business plan in the most efficient manner,” she said.

ICG’s new plans focus on on-net buildings, commercial dial tone voice and national dial-up Internet network. Earlier plans for a 22-market expansion have been nixed.

This is the second round of layoffs for ICG under the reorganization and CEO Randall Curran. In October, the company cut 300 employees as part of its reorganization, though that plan had been put in place before Curran’s arrival, the spokeswoman said.