CenturyLink, Inc. is an American telecommunications company, headquartered in Monroe, Louisiana, has announced that they will be laying off more than 1,000 employees across the enterprises as a result of the “redundancies” created by the 2017 acquisition of Level 3 Communications for $24 billion.
According to a company spokesperson, Annmarie Sartor …
"As a result of our acquisition of Level 3, our customers, from individual consumers to global enterprises, benefit from our expanded, innovative network solutions and our complementary managed services. However, the combination of two large companies also creates redundant positions that must be addressed to remain competitive. In addition, as part of our ongoing efforts to deliver high levels of customer service, we are implementing best practices and increasing automation. As a result of these two factors, we are reducing our workforce by approximately 2 percent.
"We do not have state-by-state impacts at this time. We have a strong financial track record and the actions we are taking will help ensure we remain strong and positioned to compete effectively. CenturyLink, as all businesses, continually evaluates its cost structure and business practices and adjusts its operations to meet the needs of the business. The combination of two large companies normally means redundant positions. In addition, as we increase automation and enable web-enabled services, we create efficiencies in our business. This reduction in workforce results from the redundancy in positions and increased efficiencies."
It should come as no surprise to anyone, that mergers and acquisitions create redundancies and that part of the financial equation is the cost-savings from eliminating duplicative functions and redundant staff. The public announcement of the merger was on October 31, 2016, with the transaction closing on November 1, 2017. The handwriting was clearly on the wall for all to see.
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