"Sources told The Register that the company had failed to hit its targets in Europe and the UK and that customer satisfaction with Level 3 was at an all-time low."
...the layoffs will improve service? Who is on your board? Ex- HSBC board members?
My prediction: Level 3 will continue to suffer with service, introduce more layoffs, suffer more, then be bought @ a rock bottom price by someone like, Oh I dunno, Rackspace* who may feel they can't pass it up to add major pipelining to their portfolio , and then the cycle will repeat.
*(Actually, I can see Virgin going for this...)