Level 3's Global Crossing integration will result in U.S. layoffs

As Level 3 Communications (Nasdaq: LVLT) begins to integrate Global Crossing into its fold, the service provider expects to hand out hundreds of pink slips in its U.S. territory.

James Crowe, Level 3


James Crowe, CEO of Level 3, said that while other global regions will be largely unaffected, "in the U.S. there will be some job cuts."

But when it comes to potential cost savings, Crowe is taking a realistic stance. The service provider believes that it will start seeing benefits in 2013.

"We want to keep the top line growing. The cost savings will come, but we are not in a hurry to have all the cost savings in the first week," Crowe said.

Outside of cost savings, Level 3 sees potential growth in its CDN and enterprise business.

Although its CDN business currently accounts for only 2 percent of its core network services revenue, Crowe said the wireless operator's drive to deliver more video to handsets could be another growth area "as traffic from these devices is growing well over 100 percent a year."

In addition to growing its CDN business, the Global Crossing acquisition will enhance its presence in both Europe and Latin America. Having greater capabilities to serve Latin American content providers and businesses will help Level 3 compete with traditional incumbents, but also other players like BT (NYSE: BT) and Orange Business Services, and NTT America (NYSE: NTT) all of which have been recently enhancing their respective network and service presence in the region.

For more:
- Reuters has this article

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