Level 3 to cut 1,000 jobs

Jeff Smtih, Rocky Mountain News

Published February 8, 2007 at midnight

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Level 3 Communications lost $237 million in its fourth quarter and said it would cut 1,000 jobs to reduce costs and integrate recent acquisitions.

The Broomfield communications carrier didn’t break down layoffs by location, but most are likely to come from out-of-state network operations.

"As expected, Level 3 plans to eliminate duplicative positions where appropriate as it integrates the companies it has acquired over the past year," said a company statement issued by spokesman Chris Hardman. "The actions are expected to be completed by the end of the year and are not expected to materially affect the size of the company's workforce in Colorado."

Level 3 employed about 5,800 as of year-end 2006, including roughly 2,000 in Colorado.

In early January, the company completed its acquisition of Texas-based Broadwing, which employed about 1,600. The 1,000 job cuts, then, would put Level 3 at roughly 6,400 employees.

The large fourth-quarter loss was due in part to a $54 million charge to retire some debt.

Revenue totaled $846 million in the fourth quarter, down 3 percent from the previous quarter.

"Level 3 had a strong fourth quarter," maintained CEO James Crowe, citing ongoing customer demand and a "healthy" industry environment.

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