Apr 4, 2002 : WorldCom Cuts 3,700 U.S. Jobs
📅 - Global communications firm WorldCom said yesterday it would cut 3,700 jobs in the United States, or six per cent of it U.S. workforce, in an effort to meet its growth targets.
"The reduction is being taken to better align its costs with its projected 2002 revenue guidance of mid-single digit growth - guidance given in February 2002," the company said in a release.
WorldCom said employees affected by the cuts would be offered severance packages "relative to their duration of service."
The cuts represent four per cent of WorldCom's overall workforce.
The Clinton, Miss.-based firm, the second-largest long-distance phone company in the United States and a major Internet communications company, laid off thousands of employees in both Europe and North America in 2001. WorldCom has seen its share price plummet from a 52-week high of more than $21.00 to less than seven dollars in recent months.
WorldCom, like many other telcos, has struggled in recent months as the under the debt load associated with a lack of demand for network capacity and services. WorldCom provides a full range Internet, voice and data-based products that range from long distance and networking services to Web hosting.
WorldCom is also currently the subject of an investigation by the Securities and Exchange Commission, which is looking in to various aspects of the company's accounting practices.
"The reduction is being taken to better align its costs with its projected 2002 revenue guidance of mid-single digit growth - guidance given in February 2002," the company said in a release.
WorldCom said employees affected by the cuts would be offered severance packages "relative to their duration of service."
The cuts represent four per cent of WorldCom's overall workforce.
The Clinton, Miss.-based firm, the second-largest long-distance phone company in the United States and a major Internet communications company, laid off thousands of employees in both Europe and North America in 2001. WorldCom has seen its share price plummet from a 52-week high of more than $21.00 to less than seven dollars in recent months.
WorldCom, like many other telcos, has struggled in recent months as the under the debt load associated with a lack of demand for network capacity and services. WorldCom provides a full range Internet, voice and data-based products that range from long distance and networking services to Web hosting.
WorldCom is also currently the subject of an investigation by the Securities and Exchange Commission, which is looking in to various aspects of the company's accounting practices.
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URL source: http://www.thewhir.com/marketwatch/wor040402.cfm
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