Convergent Communications Cutting Workforce

ENGLEWOOD, Colo., Aug 7 -- Convergent Communications Inc. will reduce its workforce by 15 percent in an effort to decrease costs, the company said. About 250 jobs will be lost in the cut back due to a second quarter net loss of $78.1 million, or $2.79 per share. In order to become profitable the company will look to team up with various telecommunications companies, the company said. Convergent's stock closed at 3-23/32 on the Nasdaq Friday, near its 52-week low of 3, and has fallen 75 percent since the beginning of the year.
The company plans to sign a definitive agreement with Williams Communications Group Inc., a fiber optics network provider, that will allow it to consolidate its broadband capabilities, said Convergent Communications.