Genuity Cuts 22 Percent of Staff
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Genuity, a Woburn, Mass., Internet services provider, saw losses widen in the third quarter and will cut 22 percent of its U.S. workforce, about 990 jobs.
Third quarter loss was $300.4 million, or 31 cents per share, compared with a loss of $228.9 million, or 24 cents per share, for the same period last year. Analysts expected a loss of 32 cents per share, according to Thomson Financial/First Call.
Revenues fell 1.9 percent to $302.3 million from $308.1 million a year ago.
"In addition to the steps we've already taken, we will be consolidating several of our current business units and implementing other cost-cutting measures, including a workforce reduction," said Paul R. Gudonis, Genuity's chairman and CEO.
The most recent job cuts will save the company $80 million a year. Combined with earlier layoffs, Genuity has slashed $150 million out of its operating budget.
The company operates the second-largest dial-up Internet network in the United States. It was formerly the Internet division of GTE Corp. and spun out as part of GTE's merger with Bell Atlantic, now Verizon Communications.
Shares of GENU shed 0.05, or 3 percent to 1.47 at midday. In the last 52 weeks, the issue has ranged from 1.2 to 6.688.