FairPoint Announces Huge Layoff

FairPoint Communications, Inc. announced plans yesterday to reduce its workforce over the next several months by about 400 positions. There are reports that nearly half of those job cuts may come from NH.

"We value the contributions of our employees and workforce reductions are never easy," said CEO Paul Sunu. "We are making this decision after careful evaluation to ensure that FairPoint is staffed appropriately to serve our customers well, while prudently managing expenses."

Both management and union employees will be affected across the company. The company intends to notify about 100 affected management employees later this month and will follow prescribed steps in the collective bargaining agreement covering union employees. FairPoint has declared an employee surplus affecting approximately 300 union positions.

FairPoint expects the reduction in force to result in annualized operating expense savings of approximately $34 million, with the full benefit realized in 2012.

The company expects to provide severance or incentive payments to eligible affected employees. The total amount of such payments is expected to range from $7 million to $13 million.