Program completed to cut $350 million in annual costs
Frontier Communications (FTR) has launched a new corporate transformation initiative under which it aims to boost its earnings by tens of millions of dollars in roughly three years. The new initiative is rolling out after the company recently successfully completed a corporate restructuring program under which it aims to eliminate $350 million in annual costs.
To eliminate $350 million in annual costs, Frontier took a number of actions to cut operating expenses, including shrinking its workforce. The company eliminated around 360 jobs in the second quarter.
Adding $500 million to earnings by 2020
To achieve its goal of boosting earnings by $500 million by the end of 2020, Frontier wants to drive revenue growth and minimize costs. Reducing customer defection is one of the ways Frontier hopes to drive revenue growth and achieve its goal of adding $500 million to its bottom line in the next few years. It’s unclear whether layoffs will be part of the new transformation initiative since it was under the recently completed cost-saving program.
Revenue fell in the latest quarter
Frontier lost 98,000 customers in the second quarter, resulting in its revenue falling 6.2% YoY (year-over-year) to $2.2 billion. US Cellular (USM), T-Mobile (TMUS), and Verizon (VZ) grew their revenues by 1.4%, 3.5% and 5.4% YoY, respectively, in the second quarter. Revenue fell 2.1% YoY at AT&T (T) and 0.4% YoY at Sprint (S) in the second quarter.