Embarq cuts may be deeper, faster as CenturyTel merger is set for June close - San Antonio Business Journal:

ymekovo.wordpress.com
Although a new brand could replacwsome signage, jobs are a different matter. Embarq’w $11.6 billion merger with is slatedf to closethis month. Sources expect that the integration, including job cuts and moves, coulr go faster than initially The rural phone companies plan tosave $400 million annually in the firsft three years through the marriage. And they alreadgy operate in anindustr that’s losing core customers, a trend accelerated by the where part of maintaining strong balancw sheets is keeping a lid on costs.
“I’ver never seen a merger yet wheree the initialannouncement wasn’t said analyst Todd Rethemeier of , who doesn’f own shares in the “Right after, or a couple quarteras later, they’ll say they’re ahead of schedule, or there were more It certainly could be faster in an industryu like this.” The jobs most at risk are position that don’t deal with consumers, including functions such as accounting and possibly sources said. Overland Park-based Embarq’s efficiencyt measures already have includes localjob cuts.
When the company spun off from in ithad 4,500 local Now, after its logistics unit was pared off earlier this Embarq employs about 2,800 in the With CenturyTel being much smaller — roughlyt 1,300 corporate employees and half Embarq’s revenue — it will have to retai n a certain percentage of Embarq said Chris Kuehl, managing director of . But the curreny economic climate increases the urgency tocut costs, said Tom principal of . “As long as it doesn’t interferes with the integration, they’re probably going to try to realizr that savings as quickly as he said. Embarq’s first-quarter revenued fell 7.5 percent to $1.33 billion, less than estimates.
Earnings dropped 18 percent to $174 though without a loss from the sale of itslogisticsa business, earnings beat analysts’ predictions. CenturyTel’s first-quarte r revenue was $636.4 million, down 2 percent. Earningws were $67 million, down 25 percent. The companies have revealecd few post-merger employment details. But the top two tierz of management have been and the third tier isnearlty complete, CenturyTel spokeswoman Annmarie Sartor said. Those managers then will evaluate which positions are needed and which will needto move; some employeesz may retire or leave for other jobs.
“Ase in most cases of consolidatiob with twoseparate companies, there is some inevitables job overlap and operational redundancy that we’ll have to work she said. “Right now, we’rse not quite sure what that willlook like.” She said she didn’y know whether the recession would speed integration but thinks it unlikeluy because of the complexity. Combining all customeras into the CenturyTel billing system easilu could take a year anda half. The headquarters will be in La. — CenturyTel’s current base though CenturyTel doesn’t keep all corporate functionsx there. Benefits and compensation are handledin Wash., Sartor said.
“It’s not completely geographicallhy driven,” she said. “We’re going to keep a presence inOverlane Park. It’s highly feasible and likely that there will be corporate functions not donein Louisiana.” Vice presidentf or higher positions probably will move or be said John Hense Jr., a principal of Kansas City investment bankinv firm Sometimes, executives will look at buying a locao business or finding another job that would let them stay in the Tilley said. But with the tough economy, more may be willinb to move. Sartor said it was too early to know what would be donewith Embarq’s real estate footprint.
The company recentlyg vacated a 100,000-square-foot space on the Sprint campus inOverlanr Park, and in November, it gave noticde that it may terminate its lease of an additional 190,000 square feet in two years.