Qwest announces 7,000 layoffs
Qwest Communications’ advertising slogan may be “Ride the Light”, but at this point things are not looking very bright for the company. Today, the carrier detailed fourth-quarter earnings that were worse than expected by financial analysts. The company cut an additional 7,000 jobs and may be forced to sell assets to generate cash.
For the quarter ended December 31, 2001, Qwest lost $0.07 per share on a pro forma basis. The company reported a net loss of $516 million or $0.31 per diluted share, compared to a net loss of $116 million or $0.07 per diluted share in the fourth quarter of 2000. Revenue for the quarter sank 6% to $4.70 billion from $5.02 billion in the same period last year. That drop was attributed primarily to reduced optical capacity asset sales and Internet equipment sales.
Although this wasn’t a good quarter, Chairman and CEO Joe Nacchio doesn’t predict things will improve much later this year. For 2002, he expects revenue to be at or near the low estimate of previously issued guidance of $19.4 to $19.8 billion. Qwest posted revenues of $19.74 billion for 2001.
“The economy is a little weaker,” said Nacchio, who attributed most of Qwest’s troubles to the current economic decline. “But 2002 will be a period of transition and execution,” Nacchio said.
Want to use this article? Click here for options!
© 2014 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now