Lumos Networks board approves plan to cut 10% of workforce

theflyonthewall.com

Lumos Networks disclosed in a regulatory filing that its Board of Directors approved a plan to reduce costs. Under the plan, the company is closing or consolidating certain of its facilities and reducing its workforce by approximately 10% with these reductions taking place primarily in its legacy businesses. As a result of the plan, the company currently estimates it will incur total charges of $3.5M-$4.0M, including approximately $3.0M for employee severance and termination benefits and approximately $0.7M for early termination of leases on facilities. The company expects to complete the plan and incur a large portion of the cash costs associated with these charges by December 31, 2012, it said. As another cost reduction measure, the company also has determined to freeze further benefit accruals under its defined benefit pension plan and its executive supplemental retirement plan effective December 31, 2012.

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