Windstream trimming headcount

Communications services provider Windstream (NASDAQ:WIN) says it plans to eliminate 350 positions by December 1. Almost half of these positions, about 120, will disappear via a voluntary buyout initiative.

Windstream says it expects the move will save approximately $20 million a year. However, it will incur a charge of $7.5 million in the fourth quarter for severance and other benefit costs. The company says it also will provide "job transition assistance" to the affected employees.

The company reported November 6 that it accrued revenues of $1.46 billion in its third quarter, a decline of 2.9% from 3Q13. For the second quarter of this year, Windstream reported revenues of $1.5 billion, down 2% from the year-ago quarter.

"We continue to make progress simplifying processes, integrating PAETEC systems, and improving operations to drive efficiencies," said Jeff Gardner, Windstream's president and CEO, in a press statement. (Windstream acquired PAETEC in 2011.) "Today's actions are difficult, but necessary to effectively manage costs. While we are eliminating certain roles across the company, we continue to invest in strategic areas of our business to grow revenue, better serve customers, and create value for shareholders."

Windstream currently has approximately 13,000 employees.

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