XO Communications plans to lay off as many as 400 employees, according to sources close to the company. XO spokesman Chad Couser said he had no comment” when asked about possible job cuts.
The telecommunications provider scheduled a conference call last Friday to discus the topic, one person said.
Herndon, Va.-based XO isnt likely to disclose any job-cut numbers since the company is now private. On Aug. 18, XO completed a merger agreement to sell itself to affiliates of billionaire investor Carl Icahn, who already owned nearly 92 percent of the combined voting power of the companys outstanding shares of capital stock.
The reported layoffs also are consistent with a report in Telecom Ramblings, although the article cited no sources.
This wouldnt be the first time XO has cut its workforce. For the six months ending June 30, 2011, XOs selling, general and administrative (SG&A) expenses declined $20.2 million compared to the same period in 2010. XO primarily attributed the reduction to changes in employee benefit programs and a decline in payroll and related expenses due to headcount reductions.”
XO has been undergoing changes in its management over the last several months. In September, XOs board of directors appointed Laura Thomas to lead the company as interim CEO. Until April, Carl J. Grivner had led company for eight years as its chief executive officer. He resigned in pursuit of other opportunities.”
Born out of the Telecommunications Act of 1996, XO is one of the nations largest competitive local exchange carriers with a focus on serving businesses, enterprises, government, carriers and service providers. XO serves more than 90,000 customers, including more than half of the Fortune 500, according to a fact sheet on its website. In the second quarter, XO reported revenues of $381.7 million and a net loss of $10.1 million. From 2008 through 2010, XO incurred a combined $150.8 million in net losses from operations, according to an annual filing with the Securities and Exchange Commission.
Earlier this year, the company opposed an agreement by Level 3 Communications to acquire Global Crossing on the basis that the merger would create a global colossus” in the Internet backbone market. But XO later retreated from that position after reaching an agreement with Level 3.
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October 15 2018 @ 20:26:22 UTC