Covad to Cut 13% of Work Force
Covad Communications
(COVD)
will reduce its nationwide work force by 13% in order to cut operating costs by 20% to 30% in 2001.
The broadband services provider, which is based in Santa Clara, Calif., said it will cut about 400 jobs on all levels throughout the U.S. and halt construction on its third operations facility in Alpharetta, Ga.
Covad expects to record an unspecified charge in the fourth quarter ending Dec. 31 to cover the costs of severance arrangements and cost reduction actions. Analysts polled by
First Call/Thomson Financial
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expect the company to report a loss of $1.33 for the fourth quarter, a loss of $4.17 for the full year and a loss of $5.46 for 2001.
Shares of Covad were halted after the market closed Monday at $2.72 in
Nasdaq
trading. After resuming, Covad was quoted at $3.13 on the
Island
ECN. The 52-week high is $66.63.
