FairPoint Announces Workforce Reductions
CHARLOTTE, N.C., April 9, 2013 /PRNewswire/ -- FairPoint Communications, Inc. (NasdaqCM: FRP), a leading communications provider in northern New England, today announced it plans to eliminate approximately 90 positions across Maine, New Hampshire and Vermont over the next several months in accordance with the collective bargaining agreement.
These reductions are in addition to the elimination of over 30 management positions across the company last month.
"We are adjusting our workforce to remain competitive in our market and to further position FairPoint for success," said Greg Castle, executive vice president of human resources.
FairPoint expects the reduction in force to result in annualized operating expense savings of approximately $11 million, with the full benefit realized in 2014.
The company expects to provide severance or incentive payments to eligible affected employees. The total amount of such payments is expected to be $5 to $8 million.
FairPoint currently has approximately 3,300 employees across 17 states.
About FairPoint Communications, Inc.
FairPoint Communications, Inc. (NasdaqCM: FRP) is a leading communications provider of broadband Internet access, local and long-distance phone, television and other high-capacity data services to customers in communities across 17 states. Through its fast, reliable fiber network, FairPoint delivers high-quality data and voice networking communications solutions to residential, business and wholesale customers. FairPoint delivers VantagePointSM services through its resilient IP-based network in northern New England. This state-of-the-art fiber network provides carrier Ethernet connections to support the surging bandwidth and performance requirements for cloud-based applications like network storage, disaster recovery, distance learning, medical imaging, video conferencing and CAD/CAM along with traditional voice, VoIP, video and Internet access solutions. Additional information about FairPoint products and services is available at www.FairPoint.com. You can also connect with FairPoint on Twitter (http://www.twitter.com/myfairpoint) and Facebook (http://www.facebook.com/myfairpoint).
Cautionary Note Regarding Forward-looking Statements
Some statements herein or discussed on our earnings conference call are known as "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements about the Company's plans, objectives, expectations and intentions and other statements contained herein that are not historical facts. When used herein, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including the Company's plans, objectives, expectations and intentions and other factors. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date hereof. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made on related subjects in the Company's subsequent reports filed with the SEC.
SOURCE FairPoint Communications, Inc.