FairPoint efficiencies expected to result in $6.6 million annualized savings

FairPoint Communications, Inc (Nasdaq CM: FRP) says it is continuing to improve its operations. Along with expansion of broadband services, it has reduced employment by 78 through buyouts and layoffs. The location of the employment reductions were not announced.
"We're making good operational gains and we are proud of the 8.4 percent gain in broadband subscribers in 2011 ‘ the highest percentage gain among our industry peers," said FairPoint CEOPaul Sunu.
Earlier in March, FairPoint offered employees, who are members of the Communications Workers of America, an opportunity to take advantage of early retirement incentives. Forty-six employees were accepted for this voluntary retirement program, which takes effectMarch 30. The company believes this effort will result in expected annualized operating expense savings of approximately$3.8 million, with the full benefit realized in 2013. The company expects to provide severance or incentive payments of approximately$2.3 million.
Additionally, FairPoint is expecting to realize further savings by consolidating operational functions. Thirty-two non-represented employees will be leaving the company as their positions are eliminated. The expected result is annualized operating expense savings of approximately$2.8 millionand severance payments of approximately$400,000.
"The telecommunications industry is transforming rapidly and FairPoint is positioning itself to compete," Sunu said. "We continue to be optimistic about our business strategy, including progress being made on the regulatory front. As we continue to align for the future, FairPoint is focused on our customers and the exciting challenges in the telecommunications marketplace."
CHARLOTTE, N.C.,March 30, 2012/PRNewswire/