Genuity to Cut 22% of U.S. Staff on Weak Sales
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Genuity Inc., which sells Internet services to businesses, said it will eliminate 990 jobs, or 22% of its U.S. staff, after posting a wider third-quarter loss on weaker sales. The company also plans to cut an unspecified number of contractor positions, for a total of 24%.
Genuity’s loss widened to $300.4million, or 31cents a share, from $228.9million, or 24cents, in the year-earlier period, Genuity said. Per-share amounts assume the conversion of Class B stock. Analysts were expecting a loss of 32cents, according to Thomson Financial/First Call.
Genuity said it expects to save $80 million annually from the new cuts, which will take place this quarter. It also will pare capital spending next year. Genuity shares fell 4 cents to $1.48 on Nasdaq.
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