LITTLE ROCK — Windstream said Thursday that it will cut hundreds of management positions in a company-wide restructuring that will save it up to $40 million a year.
The Little Rock-based telecommunications firm said it will eliminate 375 to 400 jobs, or about 3 percent of its total workforce of 14,500.
David Avery, a spokesman for the company, said it was too early to know how many of the jobs will be eliminated in Little Rock and Arkansas or when employees will learn if they have been cut.
"It'll be sort of ongoing through this process," Avery said. "We'll make announcements as they occur."
The company said in a news release that the cuts should be complete by its third quarter in September. It said the annual savings should total $30 million to $40 million.
“Windstream has grown rapidly through acquisition, and it is crucial that our management structure be as simple and as responsive to customers as possible as we continue to build this company for long-term success,” President and CEO Jeff Gardner said in statement. “We began initial planning for this management review last December. It will make us more competitive and improve our ability to continue growing while delivering the best possible experience to our customers as well as the greatest value to our shareholders."
Avery called it "unlikely" that employees other than managers would be eliminated, saying the latest restructuring is "literally just looking at your layers of management."
Severance benefits and outplacement assistance will be provided to the affected employees, the company said.
Windstream reported earlier this month that its $64.6 million in first-quarter earnings were a more than two-fold increase from last year. The increase came after the company last year completed a $2.3 billion purchase of N.Y.-based Paetec Holding Corp., adding 36,000 miles of fiber to the company's network.
Windstream eliminated 280 positions after the acquisition.
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