Windstream Holdings Corp. of Little Rock announced Thursday that the company is cutting 350 positions by Dec. 1, including 38 jobs in Arkansas.
The company said it expects the cuts will lead to yearly savings of about $20 million, but will also result in a $7.5 million charge in the fourth quarter to cover severance and benefits.
The cuts represent about 2.5 percent of the company’s workforce of about 13,000. Windstream employs about 1,300 in the state and 1,100 in Pulaski County.
The company said it will eliminate 120 of the 350 positions through voluntary buyouts. The cuts are taking place across various departments, a company spokesman said.
“We continue to make progress simplifying processes, integrating Paetec systems and improving operations to drive efficiencies,” Jeff Gardner, president and chief executive officer of Windstream, said in a news release.
“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.”
It’s the second time this year that Windstream has cut jobs.
In February, the company announced it would cut 400 jobs companywide by March, including 67 in Arkansas, saving about $20 million annually. At the time, the company said it expected to pay a charge of about $9 million to $10 million in severance and benefits.
In May 2012, Windstream announced a plan to eliminate 400 management positions. Those cuts were expected to save between $30 million to $40 million. The cuts came after a review of the firm’s corporate structure in the wake of its $2.3 billion acquisition of Paetec Holding Corp. of Fairport, N.Y.
Thursday’s announcement comes ahead of Windstream’s plan to spin off some of its assets into a separate, publicly traded real estate investment trust. Windstream expects that to happen in the first quarter. Windstream expects the REIT to reduce its debt by $3.2 billion.
The move also comes less than a month after the company reported its third-quarter profits had dropped 74 percent. Net income was $8 million in the third-quarter, compared to $30.6 million during the same quarter last year.