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Covad to Cut More Jobs
TSC Staff
12/29/00 - 02:58 PM EST
Covad Communications(COVD Quote) is eliminating more jobs as part of a bid to cut operating costs in 2001 by 20% to 30% and also disclosed plans to restructure its Covad Business Solutions division. The costs of the additional restructuring will be included in the estimated $20 million fourth-quarter
restructuring charge that Covad already planned. The restructuring will result in a 400-position reduction, or about 14% of the employee base. Along with the
staff cuts announced on Nov. 27, the company's total headcount will be reduced by about 800 people. The company, a broadband services provider based in Santa Clara, Calif., said the restructuring will streamline its direct sales and marketing channel while cutting operating costs, consolidating office space and eliminating underused central offices. Shares of Covad recently lost 3 cents, or 2.3%, to $1.34 in Nasdaq trading.