Ntelos announces job cuts
Ntelos is cutting an undisclosed number of jobs in its wireless division and its corporate offices, the Waynesboro-based telecommunications company announced today.
We regret the impact this will have on our employees,” said James S. Quarforth, chief executive officer of Ntelos.
“Economic conditions over the past year have impacted our wireless business and as the wireless industry matures, it is proper for us to proactively take these measures to support continued growth in adjusted EBITDA and free cash flow,” Quarforth said.
The job cuts will include some layoffs, according to a company press release. Some cuts will be realized through an early-retirement incentive plan and the elimination of some vacant and budgeted positions.
The cuts are being done to have as little impact on customer-facing positions as possible.
“Every company reaches points in time where it is necessary to adjust its cost structure to reflect current business cycles and industry forecasts,” Quarforth said. “Primarily through a voluntary early retirement program, we did this ‘right-sizing’ in our wireline organization last year, and the results are clear as we are now achieving record levels of adjusted EBITDA in those segments. It is the appropriate time to, proactively, do the same for our wireless and corporate operations.”
The cuts will result in approximately $1.5 million in cash severance and other non-cash pension and other post-retirement curtailment and settlement charges in 2009.
Collectively, all these workforce reductions will generate net savings and reduce future expenses by approximately $4 million for the year 2010.