Last October DISH Network (NASDAQ: DISH) told Oklahoma Governor Mary Fallin it would add 250 jobs to Tulsa, a city that 600 DISH workers already called home. Last week, DISH shared that it would be cutting jobs in the customer experience center, not the sales center that opened last year, reports Tulsa World. DISH did not specify how many positions would be eliminated.
‘As a customer service organization, our team in Tulsa is dedicated to supporting our subscribers,’ said Karen Modlin, corporate spokeswoman for DISH Network, in a statement. ‘Several factors, including changes in technology and enhanced online resources, have reduced the volume of calls and customer contacts we receive.’
‘As a result, we have taken the very difficult step of rightsizing our team with a limited number of reductions. Tulsa remains an important market for DISH, and we remain committed to our team members and our future in the region,’ Modlin added.
Earlier this year DISH announced that it would lay off 90 people in March in DISH’s manufacturing division in El Paso, reports AZ Central. The company eliminated one of three work shifts because demand for equipment-refurbishing services had declined.
‘All affected employees will have two months to prepare and during that time we will make resume and interviewing assistance available,’ said John Hall, a DISH spokesman, of the El Paso job cuts. ‘We will also be inviting other local companies to conduct job fairs at our site.’
In February, DISH reported its financials for the fourth quarter and year end 2017. In that report, the company’s net income was $1.39 billion, compared to $355 million for the same period last year. Much of this change as due to the positive impact of tax reform legislation of $1.2 billion. Diluted earnings per share were $2.64 for the fourth quarter.
In terms of subscribers, at the end of the fourth quarter, DISH had 13.242 million pay-TV subscribers, including 11.03 million DISH TV subscribers and 2.212 million Sling TV subscribers. Pay-TV average revenue per user was $86.43 in 2017 compared to $88.66 in 2016. Average monthly subscriber churn in 2017 was 1.78 percent, down from 1.97 percent in 2016.
For the year, DISH had total revenue of $14.39 billion, down from $15.21 billion in 2016. Subscriber-related revenue of $14.26 billion was down from $15.03 billion in 2016. Net income for the year was $2.10 billion, compared to $1.50 billion in 2016. Diluted earnings per share were $4.07 in 2017, compared to $3.15 in 2016.
While it is not clear if DISH’s stock price declines are directly related to the layoffs, DISH investors are not impressed with DISH. On January 2, DISH stock was valued at $50.20 per share. As of 4:58 PM EDT on March 29, DISH stock had dropped to $37.89 per share.
Though DISH posted strong net income in the fourth quarter and full-year 2017 due to tax reform, DISH’s total revenue and subscriber-related revenue were both down. The company was founded in 1980 as a ‘disruptive force in the pay-TV industry,’ by its own description. If it is to stay true to that mission and to remain a viable company, it looks like some changes may be in order. Who or what those changes should be remains to be seen.