- The Washington Times - Monday, February 3, 2003

WASHINGTON, Feb. 3 (UPI) — WorldCom, the long-distance telephone company already under Chapter 11 bankruptcy protection, may lay off an additional 6,000 workers, it was reported Monday.

The Washington Post said that WorldCom will soon announce layoffs in addition to the 17,000 jobs lost last year following the discovery of accounting irregularities. The company has said that the accounting errors could total some $9 billion from 1999-2002.

WorldCom filed for Chapter 11 protection last July after the accounting problems cast doubt on company reports that it had been profitable, the Post said. Some 17,000 people have lost jobs at WorldCom since the accounting scandal broke.

The company has until the middle of April to file a reorganization plan with the bankruptcy court. The newspaper said that WorldCom Chief Executive Michael Capellas reported that the company will make that deadline.

Capellas has announced a plan to cut costs by 4 percent within 100 days. The Post said, however, that WorldCom has stopped making interest payments on some $40 billion in debt and is losing $200 million a month.



Click to Read More

Click to Hide