Broomfield-based Level 3 Communications could confirm layoffs of at least 300 people, with the majority coming from a recently acquired Englewood company, during a conference call scheduled for today.
Up to 200 of ICG Communications’ 250 employees are expected to get the ax when Level 3 closes the deal in May, said Donna Jaegers, a telecommunication analyst at Greenwood Village-based Janco Partners. Level 3 said last week it would buy ICG for $127 million in stock and $36 million in cash.
“You can probably assume 80 percent of ICG’s workforce will be severed,” Jaegers said. “You always have to keep your résumé updated in the telecommunications world.”
WilTel Communications in Tulsa, Okla., recently let go at least 100 of its more than 1,200 workers after getting bought by Level 3 for $386 million, the Tulsa World reported. Analysts anticipate more layoffs.
Level 3 spokesman Chris Hardman declined to comment on possible layoffs Monday.
Another deal with Progress Telecom for $137 million could mean more layoffs. Level 3 said in March that it had wrapped up the purchase of the wholesale network services company in St. Petersburg, Fla.
Level 3 has thousands of miles of unused fiber-optic cable across the country and circling major cities, which could be used to stream more video and voice over the Internet.
The fiber-optic network company is expected to announce better-than-expected earnings today for the first three months of 2006, driven by demand for Internet-based telephone, or Voice over Internet Protocol, and online video services.
Level 3 has said it expects income before depreciation and amortization of up to $150 million, up from its previous estimate of $125 million.
The company has a market capitalization of $4.03 billion.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
