US long distance telephone company Frontier Corp says it will cut its workforce by more than 700 employees or eight percent as part of sweeping restructuring measure aimed at cutting its involvement in many non-core businesses. The company says that its third quarter earnings will be below analysts estimates of $0.24 cents a share because of higher network costs and the overheads in operating its prepaid calling card division. Frontier also said it would phase out all low-margin, price-driven consumer long distance segments, such as its Budget Call offering. Frontier says it will divest product lines and businesses that aren’t critical to its long-term growth and cited the prepaid calling card division as one example of a non-strategic, retail-driven business the company plans to exit. The company will take a fourth-quarter restructuring charge totaling $55m or $0.33 per share.
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