WorldCom confirms job cuts


WorldCom confirms job cuts

WorldCom has announced a 6% cut in its US workforce, eliminating 3,700 of its positions from its data services division.

The carrier made the cuts to better align its costs with its expectations of revenue growth in the mid-single digits, the company said in a release. Newspaper reports said the company would cut up to 10% of its workforce.

Jobs in the company's long-suffering long-distance unit remain unaffected by the cut at the WorldCom Group, the company's Internet backbone and business data services division.

Long-distance revenue has deteriorated steadily because of stiff competition, a weak economy and users substituting wireless and digital communications for long-distance calls, WorldCom said.

WorldCom cut its workforce by 9,000 workers last year in an attempt to deal with the economic downturn. So far this year, the telecommunication industry has announced 60,691 job cuts, according to outplacement firm Challenger, Gray & Christmas.

Bankrupt carrier Global Crossing Holdings has cut 9,000 from its staff this year and in March Verizon Communications announced a reduction of 10,000 jobs.

The US Securities and Exchange Commission (SEC) has begun an investigation into WorldCom's corporate accounting practices, the company confirmed.

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