It seems that Level3 will have some more cuts as a result of a steep loss this quarter. Over 1,000 people or 16% of the company’s workforce will be getting the axe according to TheStreet.com. I was a bit surprised by this news actually. I didn’t think things were this bad for the company.
Part of the reason I was caught off guard is that I have been hearing that in many regions, the company has pursued an acquisition strategy which put them in the position of being one of a few fiber carriers and this resulted in increased pricing power.
My contacts in the carrier hotel space however predicted the company would continue to have problems. It seems that in this case the carrier hotel people hit the nail on the head. This is not surprising as they are generally "well connected."
By the way, I don’t mean to make light of the situation as it is terrible news whenever there are job losses at a company. Still, this move should result in a stronger Level3 which will hopefully be better for the remaining workers.
I should mention that Level3 has been pretty quiet these past few years which is probably not a great sign. I suppose at some point they need to go on a positive PR/marketing campaign to boost employee and market confidence in choosing the company as a business partner.