Sponsored by Forest Grove Economic Development
Home Archives December 2008 Telecom suffers and shrinks

Telecom suffers and shrinks

| Print |  Email
Monday, December 01, 2008

PORTLAND The loss of 100 Oregon jobs from Denver-based Qwest, part of 1,200 jobs the telecom company said it would cut nationwide by year’s end, is another blow to an already shrinking job sector in Oregon.

The state reports that 300 telecom jobs have been lost this year, or 3.4% of that sector’s workforce. That figure includes 10 jobs cut by Metro One Telecommunications earlier this year.

The loss of telecom jobs doesn’t surprise Oregon state employment economist Art Ayre. In 2001 telecom jobs in the state peaked at 11,000, but since then have steadily declined to 8,500 in September of this year as new technologies enter the industry and providers become more labor efficient.

Ayre projects telecom jobs will grow at one-third the pace of overall job growth in the state through 2016 in part because wireless technology is less labor intensive than  maintaining landlines. Telecom employment nationwide is expected to grow at half the pace of all other industries. “When we look at the trends, we are expecting it to be a very weak sector in the state,” Ayre says.

Conventional land-line accounts are a significant part of Qwest’s revenue, but the number of those phone lines the company manages has dropped by almost 10% since this time last year as customers increasingly prefer wireless technology, says company spokeswoman Diane Reberger.

Qwest reported $3.4 billion in third-quarter revenue, a 1.6% decline from the same period last year. Profits nose-dived from the same period last year from $2.1 billion to $151 million, according to the company’s most recent Securities and Exchange Commission filing. Revenue from voice services, the business segment landlines fall under, is down nearly 9%.

In response to changing customer demand, the company is ramping up its high-speed Internet services to compete with cable providers, says Reberger. She declined to say how and when the lost jobs might return to the state.

The Oregon job cuts will be spread throughout all operations of the business and be completed by the end of the year, with about 50 coming from Portland.                 

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Podcast: Interview with Steve Balzac

Contributed Blogs
Tuesday, August 19, 2014

082014BalzacBY TOM COX | OB BLOGGER

Tom Cox interviews Steve Balzac, author of "Organizational Psychology for Managers."


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


Read more...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS