CCI Crown Castle Inc

By Denny Jacob

Crown Castle plans to reduce its workforce by 15% as part of an effort to cut costs amid lower tower activity.

The real estate investment trust company said it will also discontinue installation services as a product offering within its towers segment while continuing to offer site development services on its towers, as well as consolidating office space, according to a regulatory filing.

Crown Castle expects to incur restructuring charges around $120 million, most of which will take place in the third and fourth quarter. About $70 million is tied to its employee reduction, while $50 million will come from its office space consolidation.

The Houston-based company sees changes in headcount and discontinued installation services to be substantially completed by the end of the third quarter. It expects to finish installation services under currently existing contracts. The changes to its office space should be completed by the end of the fourth quarter, but payments associated with lease obligations are expected to be made over future years per their terms.

Crown Castle employed about 5,000 people in the U.S. as of Jan. 31, according to a regulatory filing.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

July 24, 2023 17:01 ET (21:01 GMT)

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