Sunday, November 1, 2009

Qwest Announces Cost Controls, Freezes Management Salaries

Qwest Communications announced a number of cost cutting measures. Effective Jan. 1, 2010, the company will no longer provide future pension benefit accruals for active management employees under the Qwest Pension Plan and the Qwest Nonqualified Pension Plan.

Additionally, the company announced it will not award a merit increase to management employees in 2010.

The company expects the change to the Qwest Pension Plan to result in annual savings of approximately $60 million, and the 2010 salary freeze is expected to save the company about $35 million in 2010. Along with other changes to employee health-plan and life insurance benefits, total savings would amount to approximately $100 million in 2010.