Crown Castle initiates restructuring plan, to reduce headcount by about 15%

According to a regulatory filing, on July 24, 2023, Crown Castle Inc. initiated a restructuring plan as part of the company’s efforts to reduce costs to better align the company’s operational needs with lower tower activity, as discussed in the company’s second quarter 2023 earnings release issued on July 19, 2023. The Plan includes reducing the company’s total employee headcount by approximately 15%, discontinuing installation services as a product offering within the Towers segment while continuing to offer site development services on Company towers, and consolidating office space. In connection with the Plan, the Company estimates it will incur aggregate restructuring and related charges of approximately $120 million, most of which the Company expects to incur in the third and fourth quarters of 2023. In connection with the employee headcount reduction under the Plan, the Company estimates it will incur restructuring and related charges of approximately $70 million, substantially all of which would be cash expenditures consisting primarily of employee severance and other one-time termination benefits. In connection with the office space consolidation under the Plan, the Company estimates it will incur restructuring and related charges of approximately $50 million, of which approximately $30 million will be cash expenditures related to remaining obligations under facility leases, with the remaining approximately $20 million representing the write-off of leasehold improvements. The Company does not anticipate any significant incremental, discrete cash expenditures related to the discontinuation of the Company’s Towers installation services, other than related employee severance and other one-time termination benefits referenced above. The actions associated with the employee headcount reduction and discontinuation of Towers installation services under the Plan are expected to be substantially completed by the end of third quarter of 2023, although the Company expects to complete installation services pursuant to currently existing contracts. The actions associated with the office space consolidation under the Plan are expected to be substantially completed by the end of the fourth quarter of 2023; however, the payments associated with facility lease obligations are expected to be made over future years in accordance with their terms.