Crown Castle, a real estate investment trust company, has announced plans to reduce its workforce by 15%. The decision comes as part of an effort to cut costs due to decreased tower activity. In addition to the employee reduction, Crown Castle will discontinue its installation services offering within its towers segment.
According to a recent regulatory filing, the Houston-based company expects to incur approximately $120 million in restructuring charges. The majority of these charges will occur in the third and fourth quarter. Approximately $70 million of the charges are tied to the employee reduction, while the remaining $50 million will come from the consolidation of office space.
Crown Castle anticipates that changes in headcount and discontinued installation services will be mostly completed by the end of the third quarter. The company plans to fulfill installation services under existing contracts before discontinuing them. The consolidation of office space is expected to be completed by the end of the fourth quarter. However, lease obligation payments associated with the office space will be made over future years as per their terms.
As of January 31, Crown Castle employed around 5,000 people in the U.S., according to regulatory filings.