Every single one brings layoffs. Somehow roles which have nothing to do with it are always classified as redundant (I've seen it happen again and again) and people are kicked out. Every single time it's used as an excuse to get rid of good, hardworking people.
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This isn't just Lumen. Even a small Mom and Pops businesses in your town practice this.
It doesn't sound fair but that's business.
When the company acquires another company. There're always a duplicate positions. A normal practice is to remove to stream line the workforce. A lot of the executive positions are also removed.
1/3 of Lumen debt is floating rate. When interest rates rise and they refinance the other 2/3s long term debt in 3-4 years, they'll be in default, liquidated and closed down if the US keeps raising interest rates. There is no stopping that because of larger geopolitical strategy.
They overpaid Level 3 shareholders, but its easy to see why. They took over, ran the business into the ground by not investing in lower maintenance technology and squeezed workers to save on benefits and lost customers they thought they could fool by promises they intended to break, then change the name and sell those assets.
Higher consumer prices have followed as main street ultimately pays the debt. The bond market will have the final say. Every executive at Lumen will be retired and golden parachuted out before it ends. That's why renegotiating debt covenants is huge for the current operators.
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