CenturyLink Inc. has started laying off hundreds of employees companywide in cuts that will continue in coming weeks as the telecom adopts new technology and streamlines following last year's merger with Level 3 Communications.
The Monroe, Louisiana-based company (NYSE: CTL) is cutting 2 percent of its staff, eliminating jobs in various divisions across the business, CenturyLink confirmed Thursday. The company did not disclose an exact number, but employment figures it disclosed earlier this year suggest a 2 percent cut would mean as many as 1,050 employees let go.
CenturyLink employs about 7,800 people in Colorado. It’s not clear how many employees are affected at the telecom’s major offices in downtown Denver, Broomfield and in the southern metro-area suburbs.
"The combination of two large companies also creates redundant positions that must be addressed to remain competitive. In addition, as part of our ongoing efforts to deliver high levels of customer service, we are implementing best practices and increasing automation,” said a statement from Mark Molzen, a company spokesman.
The company gave no detail about what kinds of positions are being eliminated or about whether cuts would vary in particular geographic areas.
It is the largest round of layoffs at CenturyLink since acquiring Broomfield-based Level 3 Communications in a $24 billion stock-and-cash deal that closed Nov. 1.
The Communications Workers of America union, which represents thousands of CenturyLink employees, blasted the cuts as "disgraceful," claiming the company received $1.1 billion in benefits from last year's federal law reforms, known as the Tax Cut and Jobs Act.
"CenturyLink has made its priorities clear. Instead of looking out for their customers and employees, they are chasing short-term gains in order to boost stock prices and put more money in the pockets of their large shareholders and top executives," said Brenda Roberts, Vice President of Communications Workers of America District 7 which represents over 11,000 workers at CenturyLink.
Prior to the cuts CenturyLink employed about 52,500 people in 60 countries.
The merger turned CenturyLink, already the third-largest U.S. landline phone and internet company, into a business generating 75 percent of its revenue selling data and networking services to businesses.
CenturyLink COO Jeff Storey, formerly the CEO of Level 3, will become CEO of the combined business this month, taking over leadership from Glen Post III, CenturyLink's longtime top executive, who is retiring. Storey plans to keep living in the Denver area and be based from CenturyLink's offices here.
CWA members noted that Storey's employment deal reached last year included $6.6 million in a cash signing bonus, while Post received $1.3 million bonuses in his departure package. Other executives were granted smaller bonuses connected to the integration of the two businesses.
