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Qwest Planning to Cut 11,000 Jobs

September 08, 2000|Associated Press

Qwest Communications International Inc. said it will eliminate 11,000 jobs by the end of next year as part of its plan to refocus and streamline operations after its acquisition of regional phone company US West. In addition to the 11,000 cuts, which will affect mostly white-collar positions, Denver-based Qwest will eliminate 1,800 contractor jobs, Chief Executive Joe Nacchio said. Nacchio said the changes would help Qwest refocus on broadband, Internet, wireless and bundled services, in which he expects to see more growth.

Nacchio also said Qwest's revenue--fueled by growth in broadband, wireless and Internet services, as well as telephone service--should rise to $18.8 billion to $19.1 billion this year, up from a target of $18.5 billion.

The job cuts, designed to eliminate overlaps, eclipsed the 1,000 projected in June at the time of the merger with US West. US West had 65,000 employees and Qwest had about 71,000.

Qwest said it expects to report anywhere from $900 million to $1.7 billion in third-quarter costs related to downsizing after the acquisition. Qwest shares fell $2.06 to close at $49.44 on the New York Stock Exchange.

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