XO Stresses Channel Dedication, Investment Despite Job Cuts

By Kelly Teal Comments
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XO Communications is not disclosing how many people were laid off last week, but it is stressing its dedication to the channel.

Industry insiders told Channel Partners the number totaled 10 percent of the provider's employee rolls. XO would not confirm or correct that figure. It did, however, note that the job cuts impacted all groups.

"There was not a flat percentage target for all departments to meet but [the decision] was strictly based on business needs," a spokeswoman said.

Despite the reduced headcount, XO said its channel structure remains strong.

"We are further investing with additional experienced resources," XO's Shane McNamara, vice president, partner channel, told Channel Partners in a statement. "There will be an investment in additional sales engineering support fully dedicated to the channel as well. We’ve got the right teams in place to support partners and there has never been a better time to bring your business to XO."

XO declined to give details about its "organizational realignment" plans.

XO is the third channel-focused provider this month to initiate layoffs. Both Sprint and EarthLink have axed jobs in search of efficiencies.

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