Broomfield-based Level 3 Communications Inc. is cutting 150 positions to further “flatten” the organization and cost structure, officials said in the company’s earnings report Tuesday.
Some of those affected are directors and those in higher management positions, including chief information officer Kevin Hart and Grant van Rooyen, president of the content-markets group.
About 100 additional positions will be “restructured,” said Jeff Storey, president and chief operating officer. It is unclear how the restructuring and layoffs will affect the Broomfield headquarters because the company is not breaking out the cuts by location.
During the first quarter, Level 3 recorded a net loss of $132 million, or 8 cents per share. The loss is narrower than the first quarter of 2008, when Level 3 had a net loss of $190 million, or 12 cents per share. Revenue for the most recent three- month period was $980 million, down from $1.1 billion from the same quarter a year ago.
Sunit Patel, senior vice president and chief financial officer, said the company’s current cash flow should help meet Level 3’s debt obligations for 2009, 2010 and potentially 2011.
The layoffs, which affect about 2.7 percent of the company’s 5,550-person workforce, are expected to help rein in expenses and improve service for customers, officials said. Level 3 is expected to take $6 million to $7 million in severance charges during the second quarter, officials said.
