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• October 29, 2008 Qwest Cuts Workforce as Profits Sag

Communications posted a profit for its third quarter Wednesday, but said the continued slide of its traditional phone business is forcing it to cut 1,200 jobs, 3 percent of its workforce.

The cuts will come before the end of the year, which will leave the company with 33,500 employees, 9 percent fewer than at the end of last year. That's about the same rate at which customers are canceling their phone service to go wireless or sign up with the cable company.

The cuts will come from all levels and units of the company, Chief Operating Officer Tom Richards said.

The Denver-based phone company, the country's third-largest, earned US$151 million, or 9 cents per share, in the three months that ended Sept. 30. That was down 93 percent from $2.06 billion, or $1.08 per share, a year ago, but those 2007 results were boosted by a $2.1 billion tax benefit.

Revenue fell 2 percent to $3.38 billion.

•  October 29, 2008  Economic Woes Fail to Throttle Comcast Earnings

The nation's largest cable operator, on Wednesday reported a 38 percent increase in earnings for the third quarter as a sharp drop in capital spending and higher cable TV rates buoyed its bottom line.

Bucking the trend among cash-strapped companies, Comcast also said it expects to exceed its free cash flow growth forecast of at least 20 percent in fiscal 2008.

But the company, mindful of the tight credit market, said it won't be using up all of funds approved to buy back shares by the end of 2009. Instead, it will proceed more cautiously depending on market conditions. Comcast has US$4.1 billion remaining on the repurchase program.

 •  October 28, 2008 CenturyTel's Embarq Deal Changes the Shape of Acquisitions to Come

CenturyTel Monday said it will buy Embarq, a larger fellow phone company, for stock initially valued at US$5.8 billion.

Analysts said the move was a harbinger of further deals for rural phone companies, which are suffering from line losses as consumers choose phone service from wireless or cable companies.

The combined company will have about 8 million lines spanning 33 states, mainly in rural areas.

   

 


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