Level 3 to lay off 700 employees worldwide

September 3, 2013 | By Sean Buckley

Level 3 Communications (NYSE: LVLT), according to various reports, is going to lay off 6.5 percent or 700 of its employees worldwide in an effort to cut costs and pave a path to become profitable.

"As our business continues to evolve, Level 3 is focused on aligning our resources to maintain a differentiated customer experience, while also driving profitable growth," a Level 3 spokeswoman said in a statement to The Denver Post. "Streamlining our business operations to efficiently and effectively respond to the complex demands of the enterprise market and other core aspects of our business is critical to achieving our long-term objectives."

Out of this total figure, the service provider will let go about 150 workers in Colorado and another 60 in the U.K.

James Heard, Level 3's EMEA regional president, said in a message to employees obtained by The Register that slow revenue growth in the region drove the layoffs.

These job cuts come during a major leadership change at the competitive provider where Jeff Storey was named as the next CEO in April, replacing company founder Jim Crowe, who said he would step down by the end of the year.

During the process of integrating the Global Crossing assets into its fold, Level 3 initially laid off 400 employees last year.

Finding a way to turn its financial fortunes around continues to be a major priority for the company.

In the second quarter, Core Network Services was the main driver, rising 2.4 percent to $1.4 billion, while reducing its losses to $24 million. While the losses were lower than the $62 million it reported in the same period a year ago, this was the eighteenth quarter where the service provider reported a loss.