Windstream to cull up to 400 management positions
After buying nine companies since 2006, Windstream said today that it is streamlining management positions by cutting 375 to 400 jobs.
The job cuts, which are slated to be finished by the third quarter, represent 3 percent of Windstream’s total workforce of 14,500.
"Windstream has grown rapidly through acquisition, and it is crucial that our management structure be as simple and as responsive to customers as possible as we continue to build this company for long-term success," said Jeff Gardner, president and CEO of Windstream. "We began initial planning for this management review last December. It will make us more competitive and improve our ability to continue growing while delivering the best possible experience to our customers, as well as the greatest value to our shareholders.”
Windstream said the cuts are expected to result in annualized savings of approximately $30 to $40 million. Severance benefits and outplacement assistance also will be provided to employees who do not have positions in the new structure.
Windstream was formed in 2006 when it was spun-off from Alltel, as Alltel stripped down to a wireless-only company before it was bought by Verizon Wireless.
Windstream’s revenues largely consist of phone lines and residential bundles of phone, Internet and satellite TV services, which reach customers in mainly rural areas in more than two dozen states.
Windstream has been making a concerted effort to expand its data business by opening data centers to serve small- and medium-size businesses in both rural and urban areas of its footprint.