Crown Castle to Reduce Workforce by 15%, Consolidate Offices
July 24 2023 - 4:16PM
Dow Jones News
By Denny Jacob
Crown Castle plans to reduce its workforce by 15% as part of an
effort to cut costs amid lower tower activity.
The real estate investment trust company said it will also
discontinue installation services as a product offering within its
towers segment while continuing to offer site development services
on its towers, as well as consolidating office space, according to
a regulatory filing.
Crown Castle expects to incur restructuring charges around $120
million, most of which will take place in the third and fourth
quarter. About $70 million is tied to its employee reduction, while
$50 million will come from its office space consolidation.
The Houston-based company sees changes in headcount and
discontinued installation services to be substantially completed by
the end of the third quarter. It expects to finish installation
services under currently existing contracts. The changes to its
office space should be completed by the end of the fourth quarter,
but payments associated with lease obligations are expected to be
made over future years per their terms.
Crown Castle employed about 5,000 people in the U.S. as of Jan.
31, according to a regulatory filing.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
July 24, 2023 17:01 ET (21:01 GMT)
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