Digex to lay off 200 employees

Digex, the managed Web application hosting arm of telecommunications carrier WorldCom, said that it is laying off 200 employees.

Digex, the managed Web application hosting arm of telecommunications carrier WorldCom, said that it is laying off 200 employees.

The company said the move, effective immediately, will mainly affect its non-service-delivery units.

"These are difficult decisions, and much effort has been made to ensure that these actions will not impact delivery of services to our customers," said George Kerns, Digex's chief executive officer.

Digex said the layoffs were part of an overall plan for the company to become financially self-sufficient and to serve its customers better. "This initiative is one of several actions we're taking to ensure expenses are aligned with revenues," Kerns said.

WorldCom, which filed for bankruptcy last month, holds a controlling interest in Digex, but the company was not included in WorldCom's bankruptcy filings.

Digex spokeswoman Secret Wherrett said the company's goal is to be self-sustaining in a year. WorldCom will continue to fund the company until then, she said.

Wherrett said the layoffs are unrelated to WorldCom's troubles because Digex is a separate company.

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