LITTLE ROCK, Ark. (Windstream)- Windstream (Nasdaq: WIN) is reducing its workforce to increase operational efficiency as it continues to focus on becoming the premier enterprise communications and services provider.
The company plans to eliminate approximately 400 positions by March 3. About 175 of those positions are being eliminated through a voluntary separation initiative. Windstream currently has approximately 13,500 employees.
"Changes that affect people are never easy, but they are necessary for Windstream to succeed in a highly competitive marketplace," said Jeff Gardner, president and chief executive officer of Windstream. "We continue to invest in our growth areas, primarily business services and consumer broadband, and at the same time we must maintain a disciplined approach to expense management."
The changes are expected to result in annualized savings of approximately $20 million. The company expects to incur a charge of $9 million to $10 million in the first quarter to pay severance benefits to affected employees.
In addition to severance payments, the affected employees will receive outplacement counseling.