Cedar Rapids-based McLeod U-S-A has sold off a billion dollars worth of assets, and executives say the company has emerged from bankruptcy to post a six million dollar profit for the second quarter on their “core business.” The company, overall, was 45-million in the red. Chris Davis, Chairman and C-E-O of the telecommunications company, outlined the financial picture on Wednesday. The company had four billion dollars worth of debt, but Davis says the sale of “non-core” businesses like cable systems has cut the company’s debt to 715 million dollars. Davis, formerly with Gulfstream, says McLeod has 10 new senior managers, and three new experts in the telecom industry have been added to the company’s board of directors. McLeod has trimmed the overall workforce so there are — in Davis’ words — “fewer, better people” working in the company.Davis says they’ve reduced redundancy and over-lap.Through lay-offs and selling off divisions, the company’s workforce will have been cut by 60-percent in the past 10 months, from about 11-thousand-500 to the new figure of between 45-and-48-hundred. Davis says the company has also consolidated operations in offices in Cedar Rapids, Tulsa, Oklahoma, and Springfield, Missouri.McLeod offers telecom services in a 25 state region.
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