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Windstream is laying off employees, including more than 50 in Arkansas, as part of an effort to prepare the company for future growth.
Some 54 positions are being eliminated in Arkansas in various work groups, including 43 in Little Rock where the company is based, said David Avery, Windstream’s vice president of corporate affairs.
“We are only providing the local impact to individual media outlets and not disclosing the overall number of positions affected or estimated savings from the reductions,” he said. “They are effective Feb. 1. Decisions that affect our people are difficult. We appreciate the contributions of those whose positions are affected and will provide severance benefits.”
The workforce changes will improve Windstream’s overall cost structure and “enable continued investment in our business,” Avery said.
“As we position the company for growth, we must ensure that we have the optimal organizational structure in place while making our processes more efficient, reducing redundant systems and delivering robust technology solutions, including SD-WAN and unified communications, to customers,” he said.
Windstream had about 13,000 employees as of Dec. 31.
Brian Washburn, principal leader of network transformation and cloud at Ovum, says prices for network services – especially serving larger businesses – are under constant pressure, and investment cycles to upgrade facilities are getting shorter.
“All the major network operators including Windstream have to run lean,” he said. “That’s the reality of present-day market forces.”
“Windstream closed its major acquisition of EarthLink nearly a year ago,” Washburn said. “For that acquisition, the company forecast about $125 million in annual synergy savings. Some of those savings come from combining operations. As the businesses are integrated and streamlined, there will be reassignments and workforce reductions.”