Wednesday, November 11, 2009
NTelos cuts 48 jobs across company
The company said the cuts are necessary for it to remain competitive.
The latest from The Ticker blog
Waynesboro-based NTelos Holdings Corp. announced Tuesday plans to eliminate a total of 48 jobs in the public company's NTelos wireless segment and in corporate positions.
Eleven of the 48 employees have been offered early retirement incentives, the telecommunications company said, and some vacant positions will be cut from the budget. The 37 other employees lost their jobs Tuesday.
NTelos described most of the jobs as support positions.
Among other office sites in Virginia and West Virginia, NTelos wireless has operations in Daleville and Covington. Spokesman Mike Minnis said six jobs are affected in the Roanoke Valley.
In a news release, James Quarforth, NTelos Holdings' CEO, attributed the job cuts to economic conditions over the past year as well as a maturing and highly competitive wireless industry.
Minnis said the company is healthy and that the elimination of the jobs is necessary to remain competitive going forward.
Nearly seven years ago, in February 2003, NTelos filed for Chapter 11 bankruptcy protection and emerged in September 2003 as a privately held company. In February 2006, it became a public company again.
NTelos made similar job cuts last year in its landline, or "wireline" division, which includes traditional telephone service.
As an integrated communications provider, NTelos offers wireless phone service, local and long-distance phone services, broadband Internet access and other services to customers in Virginia, West Virginia, Kentucky, Ohio, Tennessee, Maryland and North Carolina.
Companywide, NTelos employs about 1,200 people, Minnis said.
The company said the job cuts will yield savings and reduce future expenses by about $4 million for 2010. It anticipates charges this year of about $1.5 million related to severance packages and other expenses associated with the work force reduction.
Last week, NTelos wireless said it had 438,303 subscribers as of Sept. 30, a 3 percent increase compared with the same period last year.
The stock for NTelos Holdings Corp. trades on the Nasdaq exchange as NTLS. On Tuesday, its stock price closed at $14.89, down 11 cents.
Staff writer Matt Chittum contributed to this report.
