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Qwest Communications announced on Thursday that it plans to layoff an additional 7,000 employees, and lowered its revenue estimates for 2001 and 2002.
Qwest had already cut 4,000 employees in September. The Denver-based broadband communications company said it expects to reduce its workforce to 55,000 by mid-2002.
The company cited the deteriorating national economy as well as economic problems particular to the 14 Western states in which it provides local communications services, as well as a decrease in demand for wholesale broadband capacity services. Qwest said the layoffs will not negatively impact customer service.
Qwest said it expects revenue in the fourth quarter of $4.8 billion, with EBITDA earnings of approximately $1.7 billion. For 2001, the company said its revenue would be $19.8 billion with EBITDA earnings of approximately $7.45 billion.
For 2002, Qwest expects reported revenue in the range of $19.4 to $19.8 billion and EBITDA in the range of $7.1 to $7.3 billion.
The company also said it would take a charge against fourth quarter earnings of $400 to $600 million primarily for severance costs and minor asset write-downs.
In early afternoon trading Thursday, Qwest was down .30 to 11.80, or 2.48 percent.