Nextel to lay off 5% of workers as it posts first-quarter results
Nextel Communications, Reston, VA, reported operating revenue of $1.74 billion for the first quarter of 2001, compared to $1.18 billion during the first quarter of 2000. The company added 700,000 subscribers worldwide during the quarter for a total of 8.3 million.
Nextel’s first-quarter operating cash flow (earnings before interest, taxes, depreciation and amortization) was $318 million, 39% higher than 2000’s first-quarter operating cash flow of $228 million. Its first-quarter loss was $428 million, less than 2000’s first-quarter loss of $435 million.
John Brittain, Nextel’s chief financial officer, said that higher customer acquisition and handset upgrade costs will be offset by actions to reduce operating, distribution and handset subsidy costs. Among those actions is the layoff of 5% of the company’s 17,000 workers, about 850 employees.