Covad slashes 13 percent of workforce

Covad Communications will cut nearly 400 full-time jobs.

The DSL service vendor on Monday announced cost-cutting moves that include a 13 percent reduction in its workforce. Almost 400 full-time employees in Denver, Atlanta, California and Virginia will be affected, the company said.

Shares of Covad rose to 3.0937 in afterhours activity on the Island electronic communications network, following the news. Covad stock fell 0.15625 to 2.71875 in Monday's regular trading, prior to the report.

Other moves include canceling the construction of an office in Alpharetta, Ga.; holding the national network to slightly more than 2,000 central offices covering 45 to 50 percent of the United States; using line sharing to handle consumer orders after this year.

A fourth quarter charge will be recorded for the restructuring, Covad said.

Monday's news comes a few weeks after the company reported disappointing third quarter results that ultimately resulted in a change of CEOs.

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