Qwest Communications International Inc, currently struggling through a tricky financial restructuring, said this week it is to squeeze its web hosting customers into eight of its 16 CyberCenter data centers, and will sell or close down the rest.
We are looking at our options, we may close them, sell them, or use them for other purposes, a Qwest spokesperson said. The company is conducting due diligence to see how to best make use of the unwanted facilities.
The facilities being closed, all in the US, are the least profitable of the company’s 16 data centers. Each has between 20 and 30 employees, whom Qwest will attempt to offer positions elsewhere in the company on a case by case basis, the spokesperson said.
Because the company has yet to figure out how to dispose of the assets, it cannot yet provide a dollar value on the cost savings it hopes to achieve. Qwest has previously said it hopes to save about $1bn through cutting out unprofitable businesses.
The company has been in financial difficulty since it came under regulatory and criminal investigation over allegations about its accounting practices. The company has disclosed almost $1.5bn of improperly recorded revenue since the allegations emerged.