Level 3 joins AT&T in announcing job cuts, but isn't laying the blame on landline losses. It also announced an update to its tender offer for its outstanding notes in 2009 and 2010.
The Broomfield, Colorado-based company is going to lay off around 450 employees, or about 8 percent of its total workforce. The reductions will take place before the end of December (Ho ho ho! Merry Christmas to all!) and result in a restructuring charge between $12 to $15 million in the fourth quarter of 2008. Reductions are being made across the whole company in multiple locations in North America.
In addition, "certain investors" agreed to purchase $360 million of Level 3's 15 percent convertible senior notes due in 2013 in exchange for Level 3 buying and paying for $177 million (50 percent) of its 2.875 percent notes due up in 2010 and at least $240 million (50 percent) of its 6 percent convertible subordinate notes due in 2010. The $360 million is currently in escrow and waiting for Level 3 to meet the terms for the bond swap.
Last week, AT&T announced plans to axe 12,000 workers - about 4 percent of its workforce - with cuts related to the wireline division.
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