DISH Network, the satellite TV and wireless provider, informed the state on Wednesday that it will cut 499 jobs in Englewood and Littleton in early January, a dramatic reversal after months of job gains as the company built out a national 5G cellular network from scratch.
“The first employee separations are expected to occur during the 14-day period starting Jan. 7, 2024,” Kaylee Hyman, a senior corporate counsel with the company, wrote the Colorado Department of Labor and Employment in what is known as a Worker Adjustment and Retraining Notification ACT, or WARN, letter.
Of the employees being laid off, 566 will be dismissed starting Jan. 7 and another 33 starting Jan.8, according to the two letters filed with the state.
Among the positions being let go are 19 account executives, 17 staff accountants, 16 business intelligence agents, 13 social media associates and five assistant corporate counsels, according to the letters.
DISH had roughly 6,000 employees in Colorado as of August, with about 2,000 of those focused on wireless. At the time, the company said it had 700 open positions, of which 250 were on the wireless side.
Shares of DISH Network plunged to a 25-year low on Monday after the company announced an unanticipated loss in the third quarter and the resignation of CEO Erik Carlson effective Nov. 12, which was earlier than expected.
DISH shares fell from $5.49 at the close of trading on Friday to $3.44 at the end of the day on Monday, a decline of 37%. After rebounding on Tuesday, they closed again at $3.44 on Thursday.
DISH reported a loss of $0.26 a share, down from the $0.65 a share gain reported a year earlier and badly missing estimates of a profit. Revenues also missed estimates, falling nearly 10% to $3.7 billion versus $4.10 billion a year earlier.
Pay-TV subscribers decreased by about 64,000 in the third quarter, compared to a net increase of approximately 30,000 in the quarter a year ago. The company had 8.84 million pay-TV subscribers at the end of the quarter, with 6.72 million at DISH TV and 2.12 million at SLING TV.
The company also lost 225,000 wireless subscribers in the third quarter, despite a big push this summer to market its Boost Infinite cellular plan to Amazon Prime customers, ending the quarter with 7.5 million subscribers.
“Are we doing a great job of marketing?” DISH Chairman Charlie Ergen asked on a call with analysts Monday. “The answer is no. The messaging didn’t have quite the desired effect. … We’re not hitting on all cylinders there.”
The company is in a tight spot financially as it tries to switch its dependence on the fading satellite TV business over to wireless. It recently sold some of its wireless assets in the Caribbean to raise cash and is merging with its sister company EchoStar, which has a stronger balance sheet.
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