DENVER-Qwest Commun-ications International Inc. raised its revenue and EBITDA targets for 2000 and 2001 and said it would eliminate 11,000 jobs by the end of 2001.
Qwest said it expects to achieve revenue of $18.8 billion to $19.1 billion in 2000. EBITDA is expected to be $74 billion.
Qwest, which purchased U S West Inc. earlier this year, said it is realigning resources to focus on managing its Internet access and applications, communications services, wireless, DSL and video product portfolios. Qwest Chairman and CEO Joseph Nacchio said the company is taking a series of actions that include modestly raising capital budget to $9 billion in 2000 to improve a number of services, which includes doubling its customer base for wireless and DSL businesses.
Nacchio reported that wireless customers are expected to total 800,000 by the end of 2000, nearly 50,000 more customers than what was projected earlier in 200. By year-end 2001, Qwest expects to have 1.6 million wireless customers, doubling revenues to about $1 billion.
Nacchio also reaffirmed the five-year compounded annual growth targets of 15 percent to17 percent for revenue.
Qwest said it will eliminate 4,500 jobs by the end of 2000 and another 6,500 jobs by the end of 2001.The company explained that the job reductions come as Qwest streamlines its business and requires its employees to become more entrepreneurial and accountable for accomplishing strategic priorities. Most of the cuts will focus on overlapping staff functions, said Nacchio.
