- The Washington Times - Tuesday, February 4, 2003

CLINTON, Miss. (AP) WorldCom Inc. announced cost cuts totaling $2.5 billion yesterday, including the elimination of about 5,000 more jobs, or 8 percent of the company's work force, under a plan to emerge from bankruptcy in April.
The cuts are the first major moves by new Chairman and Chief Executive Michael Capellas. The savings will come through consolidation of facilities, though the company said it will maintain all its major offices including its Clinton headquarters; Washington-area offices; and operations in Denver and Colorado Springs; Richardson, Texas; Tulsa, Okla.; and Cary, N.C.
WorldCom, which is losing about $200 million a month, already has been trying to cut costs by asking the bankruptcy court to let it vacate some leases and renegotiate or get out of some supplier contracts.
WorldCom has about 60,000 employees after cutting 20,700 positions last year after the largest bankruptcy filing in U.S. history amid a $9 billion accounting scandal.
The company is being investigated by the Justice Department and the Securities and Exchange Commission.
In an address to employees last month, Mr. Capellas was short on details, but said WorldCom would act with "an outrageous sense of urgency" to turn its business around after the scandal that led to the resignations of founder and former Chief Executive Officer Bernard Ebbers and Chief Financial Officer Scott Sullivan.
Mr. Sullivan is set to go to trial in the fall on charges of ordering accounting executives to move operating expenses off the books, making WorldCom appear profitable.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide