Crown Castle (NYSE: CCI) announced yesterday that it intends to cut some of its workforce while closing down some offices “while maintaining our expectations for revenue growth across towers, small cells, and fiber solutions over the next several years.” Although the company did not give details on how many jobs would be cut or offices closed in its statement, it did say it will “primarily impact the fiber segment and corporate departments.”
“As we have continued to progress the strategic and operating review of Crown Castle’s fiber business, we are implementing changes designed to drive operational efficiencies and to enhance returns in fiber solutions and small cells,” said Steven Moskowitz, Crown Castle’s president and CEO. “These changes are being implemented, regardless of the outcome of the strategic review, which remains active and ongoing.”
Moskowitz cited the company’s reduction in capital expenditures as the reason for the belt-tightening and expects to save approximately $100 million in operating costs with around $60 million impacting the bottom line this year.
“We believe this increased focus on cost discipline and capital efficiency will enable us to generate higher returns and reduce our reliance on external capital to fund organic growth opportunities,” he added.
Crown said it expects to reduce gross capital expenditures in its Fiber segment by $275 million to $325 million in 2024 and is reducing staffing levels by more than 10 percent from current levels.
Crown said it has already started to make changes to some projects that no longer meet the company’s “targeted investment focus” and will continue working collaboratively with customers to modify or cancel additional projects that “may benefit all parties while positioning the Company to achieve higher incremental returns.” The company said it expects these operational changes, in combination with other delays in delivering some in-process small cell projects, to result in a reduction of 3,000 to 5,000 new revenue-generating small cell nodes in 2024 and a reduction in new leasing activity of approximately $15 million in the year.
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