Touch America lays off 216 employees

The Billings Gazette ^ | June 18, 2003 | The Montana Standard

[Willie Green]

For education and discussion only. Not for commercial use.

Butte-based Touch America laid off 216 of its 378 employees Wednesday afternoon, according to company spokespeson Linda McGillen.

Of the layoffs, 72 are Butte employees. Ninety-nine Butte employees remain.

In Missoula, 23 people were laid off, with 20 jobs remaining there. In Denver, 45 were let go and 16 employees remain there.

McGillen was not available for specific layoffs in other cities this afternoon.

The bad news is the latest fallout from the company that used to be the state's stalwart corporate citizen: Montana Power Co.

Over the past six years, MPC chose to quit the energy business and become a telecommunications company called Touch America.

The move didn't work as planned. Stock that had traded at $65 briefly in March 2000 has been trading at below $1 since last July. In March, the New York Stock Exchantge delisted Touch America for trading below $1 for eight months. The company changed symbols and is now trading on "pink sheets" which require no financial disclosures.

[lelio]

Courtesy of InternalMemos.com , a f'edcompany.com site here's the memo that went out to employees:

From: Noyd, Marg
Sent: Wednesday, June 18, 2003 1:38 PM
To: [212 names removed]
Subject: Employment

We have determined that layoffs at Touch America are necessary. This is to inform you that we are eliminating your position effective immediately. We expect the termination of your employment to be permanent and no bumping rights exist.

A packet with information regarding this layoff will be provided to you. For affected employees in Butte, your packet will be issued directly to you by your manager. For affected employees outside of Butte, your packet is being sent to your home address via certified mail today.

You have been paid for your work through Wednesday, June 18, 2003 and termination of your employment may fall within the requirements of the Worker Adjustment and Retraining Notification Act. We regret having to take this action.

Should you have any questions, please contact George Paul @ 406-497-5321 or Marge Noyd @ 406-497-5580.

Robert P. Gannon
Chairman & Chief Executive Officer