A number of Denver IT jobs (Click here) could be lost as a locally-based communications company merges with another.
Denver-based Qwest Communications International Inc. has announced its plans to merge with CenturyLink, a move that will create the third-largest local phone and Internet service company in the country.
"We believe the combination of CenturyLink's and Qwest's employees, assets and service areas will provide us greater scale, scope and expertise and will provide significant benefits for shareholders, customers and our communities," Glen F. Post III, president and CEO of CenturyLink, said in a statement.
Unfortunately, the merger will most likely result in the loss of some jobs in the Denver area, as the newly-formed company plans to locate its headquarters in Louisiana, where CenturyLink is already located.
Officials expect that the merger will save about $575 million per year by combining operations and eliminating redundancies. Denver will most likely be hard-hit as the company looks for ways to become more efficient.
However, the company still plans to keep some operations in Denver, including a regional headquarters and the Qwest Business Markets Group. In addition, Edward Mueller, chairman and CEO of Qwest, will get a spot on the CenturyLink board.
Other benefits of the merger include:
- A stock swap of $10.6 billion.
- The assumption of almost $12 billion in debt.
- Increased capabilities with the creation of a national fiber network.
- Expanded and enhanced offerings, including broadband products and services and high bandwidth services.
- More financial strength and flexibility.
