XO AXes 600

Seeking EBITDA positive status in the first half of 2002, it will reduce its workforce by about 8 percent of its total employee base

October 2, 2001

1 Min Read

RESTON, Va. -- XO Communications, Inc. (NASDAQ:XOXO), one of the nation's leading providers of broadband communications services, said that it remains intent on achieving EBITDA positive status in the first half of 2002 and will trim expenses by reducing its workforce by approximately 600 employees representing about eight percent of the total XO employee base. Additionally, XO reiterated that it would meet previously announced estimates for the company's third quarter 2001 revenue and EBITDA. The workforce reduction will occur primarily in staff support areas and will not have a significant impact on XO's sales or customer care organizations or on its front-line provisioning positions responsible for installing new customers or services on the XO network. "We are determined to position XO to survive the current challenges in today's economy. We deeply regret taking this action given the impact on some of our employees, but we are convinced it can be accomplished without affecting our ability to win customers and meet their telecommunications needs, " said XO Chairman and Chief Executive Officer Dan Akerson. "Over the past eighteen months, XO has been transitioning from a network construction posture to an operational organization that is running an integrated national/local network. The reductions reflect this transition and are expected to put the company more in line with mature operational productivity metrics." XO Communications Inc.

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