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October 4, 2001 — (WEB HOST INDUSTRY REVIEW) — XO Communications, Inc. (xo.com), said that it remains intent
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on achieving EBITDA positive status in the first half of 2002 and will trim
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expenses by reducing its workforce by approximately 600 employees
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representing about eight percent of the total XO employee base.
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Additionally, XO reiterated that it would meet previously announced
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estimates for the company’s third quarter 2001 revenue and EBITDA.
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The workforce reduction will occur primarily in staff support areas and will
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not have a significant impact on XO’s sales or customer care organizations
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or on its front-line provisioning positions responsible for installing new
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customers or services on the XO network.
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“We are determined to position XO to survive the current challenges in
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today’s economy. We deeply regret taking this action given the impact on
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some of our employees, but we are convinced it can be accomplished without
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affecting our ability to win customers and meet their telecommunications
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needs, ” said XO chairman and CEO Dan Akerson. “Over the past eighteen
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months, XO has been transitioning from a network construction posture to an
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operational organization that is running an integrated national/local
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network. The reductions reflect this transition and are expected to put the
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company more in line with mature operational productivity metrics.”
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Several of the targeted areas impacted within XO include its new market
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construction team that no longer requires the same staffing levels resources
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due to the completion of substantial portions of the XOs network. Other
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reductions include portions of the company’s IT organization which has
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recently completed the development of a number of business systems within
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XO.
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XO will provide financial details associated with the reduction and its
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financial operations for the third quarter on its quarterly results
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conference call in late Oct.
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