WorldCom axes 5,000 jobs amid budget cuts

WorldCom axes 5,000 jobs amid budget cuts

WorldCom has slashed 5000 jobs - most of them corporate and administrative positions - and laid out various other measures to cut $US2.5 billion in costs as part of the 100-day plan for emerging from bankruptcy that was announced recently by chairman and chief executive officer, Michael Capellas.

The plan would chop line costs by 12.5 per cent and expenses in sales, general operations and administration by 13 per cent, the company said.

WorldCom aims to be out of Chapter 11 bankruptcy protection by later this year under an initiative outlined by Capellas last month.

The cost-cutting steps were the first milestone in the 100-day plan, WorldCom said.

Besides the elimination of positions at the company, WorldCom also announced line cost savings of $US1.5 billion mostly from network integration, improved technologies (which were not specified) and renegotiation of more than 2,500 supplier contracts.

The company also announced consolidation of facilities to decrease total square footage by 8.7 million square feet or 26 per cent.

WorldCom filed the largest bankruptcy in US history last July after a $US9 billion accounting scandal was revealed.

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