Service provider FairPoint Communications Inc. (NasdaqCM: FRP) says it plans to reduce its headcount by approximately 400 over the next several months. The company expects the move will save it about $34 million annually, starting next year.
The move will affect about 100 management positions and 300 union staff, says Fairpoint. The company plans to notify the affected managers this month; the union layoffs will follow procedures outlined in the current collective bargaining agreement.
"We value the contributions of our employees and workforce reductions are never easy," said CEO Paul Sunu. "We are making this decision after careful evaluation to ensure that FairPoint is staffed appropriately to serve our customers well, while prudently managing expenses."
The company expects that severance and incentive payments associated with the staff reduction will range from $7 million to $13 million.