CenturyLink Faces Its simply called a Key Strategic Problem

In some ways, it should come as no surprise that CenturyLink plans to lay off seven percent to eight percent of its fixed network workforce by the end of 2016. Revenue is falling and new revenue sources are not big enough, nor feature high enough profit margins, to offset the legacy losses.

It is not the only firm to face those problems. Virtually all U.S. fixed network operations face the same fundamental problems.

CenturyLink revenue fell 0.7 percent in 2015 to $17.9 billion. Analysts project revenue will decline two percent in 2016, according to Bloomberg. So revenue is shrinking.

“We all understand the pressure caused by the decline in our legacy revenues; it creates a $600 million negative impact on our business each year,” said Glen Post, CenturyLink CEO.