FairPoint announced its plans to lay off 400 workers, 100 of which will come from management ranks. The move is expected to save them annualized operating expenses of $34 million, although they will pay out between $7 million and $13 million in severance.
“We are making this decision after careful evaluation to ensure that FairPoint is staffed appropriately to serve our customers well, while prudently managing expenses,” said FairPoint CEO Paul Sunu in a press release.
The move is not surprising, given FairPoint’s troubles over the past few years. In fact, it’s surprising that only 400 workers are being let go. They’ve been in a rebuilding process since filing for bankruptcy in October 2009, and emerging in January of this year.
