The wobbly economy and declining revenue in its traditional telephone segment prompted Roseville-based SureWest Communications to cut 60 positions, or 7 percent of its work force.

The company's restructuring plan, announced Tuesday, includes the loss of 45 jobs locally. Eight workers will be let go in its Kansas City, Mo., operations and seven open and unfilled positions will be cut.

SureWest said the cuts include management and supervisor jobs. Employees' last day on the job will be June 30. The company said affected workers will be offered a range of benefits, job resources and severance.

SureWest anticipates cash savings of $1 million this year and annual savings of $5 million starting next year, with an additional savings of about $1 million due to reductions in consulting and advisory services. The company said it wants to concentrate on broadband services.

Like other telecommunications companies in the United States, SureWest has seen its traditional telephone segment shrink as customers turn to more-advanced communications tools. Likewise, some consumers have opted for basic, affordable service packages in the current economy.

Broadband services, however, have held their own or gained.

SureWest spokesman Ron Rogers said the company's traditional telephone segment revenue has been "declining for several years," including $4.1 million, or 19 percent, in the first quarter compared with last year's first quarter. He also cited diminishing regulatory subsidies.

"These (staff) reductions are related to scaling to those telecom revenue losses and the recent economic impact on overall growth," Rogers said.

On the other hand, Rogers said, SureWest's broadband subscriber base – which consists of television, high-speed Internet and Voice over Internet Protocol services – "has experienced consistent steady growth … (and) we are seeing subscriber growth in (the second quarter) that is reaching our highest levels since 2008."

Rogers pointed to SureWest's recently launched Advanced Digital TV service as a growth segment.

Steve Oldham, SureWest president and CEO, said the staff cuts were made after "a thorough analysis of the company's operations and strongest opportunities for growth."

SureWest said it expects to incur restructuring charges of about $1.7 million in the second quarter.

The company said it will continue hiring for positions that help grow its broadband segment.

SureWest stock closed Tuesday at $7.10, down 37 cents a share, on the Nasdaq market.

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