Cox Enterprises and its communications business, Cox Communications, announced on Thursday plans to offer voluntary buyouts as the companies said they are looking to reduce staffing and redirect resources while preparing for future growth.
Cox Enterprises, which has its headquarters in Sandy Springs, said in a memo to employees it will offer a voluntary retirement program to workers who meet certain requirements. The company said about 400 out of 2,100 employees under what the company calls its “CEI division” meet the criteria and can apply for the program.
Workers who opt-in will retire at the end of the year, the company said. Terms of the packages were not disclosed, but the company said it “will manage this program with the utmost care and respect.”
“This is an important time for Cox as we sustain our success and ready ourselves for new growth,” the memo said. “And we believe (the voluntary retirement program) is a smart and responsible way for us to continue evolving.”
The Cox memo said additional adjustments are possible in the future.
Cox is one of the largest privately held companies in the U.S. In recent years, Cox has diversified its holdings, making acquisitions in clean energy, electric vehicles and the EV supply chain, health technology, sustainable agriculture and media. Cox Communications is one of the company’s largest holdings.
Cox Enterprises does not disclose detailed financial results publicly but says on its website that it generates $23 billion in annual revenue. The company has about 55,000 total employees across its businesses.
Those businesses include The Atlanta Journal-Constitution, which is part of the CEI division and retirement-eligible employees of the media company can opt-in.
Andrew Morse, president and publisher of the AJC, said in a separate memo to employees that the voluntary program is “a generous opportunity for employees who’ve dedicated years of service to Cox and the AJC.”
The AJC under Morse has made significant investments in journalism, adding new employees in the newsroom as well as launching new products.
In his memo, Morse went on to say that “we will continue to hire for positions and adjust our structure to fuel our transformation.”
Cox Communications said Thursday it is looking to reduce headcount by about 5%, primarily in management roles and those that are not customer-facing. The communications company has approximately 17,000 employees.
While it will lead with voluntary buyouts for employees who meet certain criteria, the company said “involuntary separation packages” could follow, if needed.
Cox Communications provides broadband, cable television, home and mobile phone services and cloud services in more than 30 states. The company is based at the Cox Enterprises headquarters, but most of its service territory is outside Georgia.
The cable industry has seen declines in home television service and home phone service revenues. Cox is restructuring to focus investment and resources on future growth areas including internet service, Cox Mobile, cloud service and managed information technology and commercial fiber. The company has acquired multiple commercial fiber and managed services companies in recent years, including Segra, Unite Private Networks, RapidScale and Logicworks.
“We’re making the changes to better serve customers, reorganize the company to continue to remain competitive, focus on growth areas and reduce operational costs,” a company spokesperson said.
As part of the restructuring, Cox Communications will form two divisions — one focused on residential customers and the other on commercial clients, the company said.
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