Call-Net Enterprises Inc. confirmed on Tuesday that it was undertaking a restructuring that would include a workforce reduction of 15 per cent.
In a press release Tuesday the company announced it was implementing a package of initiatives designed to reduce capital and operating expenditures and curb costs.
Randy Benson, senior vice-president and chief financial officer, said that Call-Net was determined and committed to being cash self-sufficient by the fourth quarter of this year, and that means assessing the drivers of cost and capital in various areas of the company.
Call-Net said it was targeting all unnecessary expenditures and costs without impacting customer service or the company’s sales force and it’s 2,400 member workforce will be reduced by 15 per cent primarily in non-customer facing roles by end of year 2001 through a combination of not filling vacancies, normal attrition and by an immediate head count reduction. In addition, capital spending for the year 2001 will be reduced to the $150 million level.
Call-Net, of Toronto, can be reached at http://www.callnet.ca.
