Paetec Holding Corp., which has been active in driving consolidation in the competitive local exchange carrier sector, said in a filing with the Securities and Exchange Commission last week that it cut about 5 percent of its workforce, or about 222 jobs. The Perinton, NY, company also has employees in Iowa, Oklahoma and North Carolina. The move follows through on a recent announcement from Paetec indicating it would initiate cost-cutting efforts.
The telco has grown through acquisition, with significant deals including the buyout of Iowa-based McLeodUSA and the acquisition of IP and PBX firm Allworx late last year. Those types of deals bring new revenue sources, which always punch up the quarterly reports that follow, but 2009 is starting to look tough for everyone, so it's no surprise that Paetec is tightening up at the same time that AT&T and others are cutting jobs. However, Paetec reportedly still plans to build a $100 million headquarters in downtown Rochester, NY.
- The Rochester Democrat and Chronicle reports
Paetec acquired McLeodUSA in September 2007
Paetec acquired Allworx a month later