- Cable One disclosed this week plans to lay off 4% of its workforce
- The company employs nearly 3,000 people
- It is reorganizing its customer service team, a spokesperson said
Layoffs are coming for Cable One employees.
In an SEC filing dated June 13, Cable One disclosed plans to reduce its employee headcount by approximately 4% in connection with “certain organizational changes.”
Cable One reported in its most recent 10-K filing it had 2,993 full-time and part-time associates as of December 31, 2023. Assuming that number is still current, the layoffs would impact roughly 120 employees.
Per the filing, the organizational changes include “restructuring how the Company’s systems are managed geographically to help facilitate operational focus on customer growth and experience, market expansion and service delivery, network reliability and performance, brand awareness and local presence in each of the Company’s regions.”
The aforementioned 10-K filing noted Cable One serves 24 states in the U.S., but three-quarters of its customers are concentrated in just seven of those: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas.
All told, the company expects to incur charges of approximately $7 million related to the headcount reduction, which will go toward employee severance and “other one-time termination benefits.” Most of the charges will likely be incurred in Q2 2024.
“Additionally, we are reorganizing our customer service team to better align with our approach to providing service, ensuring we continue to meet and exceed our customers' expectations,” said Cable One CEO Julie Laulis in a statement provided to Fierce Network.
A company spokesperson added: “While we recognize change can be difficult, particularly when it impacts our colleagues, we believe this will better position our organization to evolve with shifting business and customer needs.”
Throughout the transition, Cable One “remain[s] committed to supporting all affected associates.”
The layoffs come shortly after Cable One posted revenue declines in the first quarter. Consolidated revenue fell year-over-year to $404.3 million, primarily driven by video subscriber losses. Average revenue per unit (ARPU) dropped 2.7%, though the company noted it added 6,900 residential data subscribers sequentially.
On the earnings call last month, Laulis mentioned Cable One is currently working on consolidating its billing technology onto a single platform, which will “streamline operations for associates and customers while expediting product launches.”
It’s also among the many ISPs impacted by the end of the Affordable Connectivity Program (ACP). Laulis said of Cable One’s 48,000 ACP recipients, approximately 20% are “fully dependent” on ACP funding for their service plans.
As of press time, Cable One’s stock was worth $355.82, down 0.67% on the day.