Windstream (Nasdaq: WIN) is making changes to its workforce to improve its cost structure and operate more efficiently.
The company plans to eliminate 350 positions by Dec. 1. About 120 of the affected positions are being eliminated through a voluntary buyout initiative. Windstream currently has approximately 13,000 employees.
“We continue to make progress simplifying processes, integrating PAETEC systems and improving operations to drive efficiencies,” said Jeff Gardner, president and chief executive officer of Windstream. “Today’s actions are difficult, but necessary to effectively manage costs. While we are eliminating certain roles across the company, we continue to invest in strategic areas of our business to grow revenue, better serve customers and create value for shareholders.”
The changes are expected to result in annualized savings of approximately $20 million. The company expects to incur a charge of $7.5 million in the fourth quarter for severance and other employee benefit costs. The company also will provide job transition assistance to affected employees.