Touch America to lay off 35 percent of work force

Touch America Holdings Inc. said Friday it will lay off 35 percent of its staff over the next five months as part of a "restructuring" of its operations.

By the Associated Press The Montana Standard

The layoffs of about 225 employees follow Touch America’s announcement two weeks ago that it was selling about 70,000 switched long-distance customer accounts to a Utah company in order to concentrate on its core data transmission services.

Touch America spokesman Cort Freemen said Friday that most of the positions being eliminated were tied to the accounts that were sold.

In a written statement, the company said the reductions were necessary in order to "staff at a level to support (our) business activities."

"This adjustment will take place over the next five months, but we will continue to examine staffing levels as a normal business practice," said Mike Meldahl, Touch America’s president and CEO.

Among the expected layoffs are 87 employees in Missoula, whose jobs are expected to be phased out over the next two months. Thirty-five more will be cut in Butte before summer, the company said.

"The other expected reductions will occur throughout the company as required by developing business needs," the company said.

Friday’s announcement was made after close of the New York Stock Exchange. Touch America’s stock closed at 37 cents per share, unchanged from Thursday.

The Butte-based company, which provides fiber-optic network and broadband products and services, currently has about 630 employees.

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