MCI WorldCom confirms 2,000 U.S. job cuts

By Nancy Weil
IDG News Service, 12/11/98

MCI WorldCom will notify about 2,000 employees across the U.S. today that they will be laid off as of Dec. 31, a company official said. The recently merged company has about 75,000 employees worldwide.

Most of the jobs will be cut in the telecommunication giant's network operations, where a corporate review of the recently merged company has found duplication, said company spokeswoman Jamie DePeau.

However, MCI WorldCom is also adding employees in fast-growing areas, like Internet, international and data communication operations. Thus, the company's workforce may grow, despite the job cuts announced today.

While the holiday news will sadden the affected employees, all of those being laid off will be given severance packages and job placement assistance, which includes the possibility of landing new jobs with the company, she said.

Before the merger with MCI, WorldCom had been on a buying spree. It acquired 65 companies and, with each of those acquisitions, "there has always been a net job gain" in the company, DePeau said.

The company hopes to continue annual revenue growth of 18%, she said. Two-thirds of that growth has come from the following: 72% annual growth from Internet operations, 55% from international operations and 33% from data operations, she said.

The job cuts in other areas, primarily network operations, will amount to 2.7% of the overall workforce and will occur in dozens of U.S. locations. The three locations that will be affected the most are network operations locations. About 300 of 4,500 employees in Richardson, Texas will lose their jobs, 150 of 2,000 in Cary, N.C. and 120 of 3,000 in Tulsa, Okla., DePeau said.

DePeau earlier this week declined to comment on a report published in the Wall Street Journal citing an unnamed executive as saying that the company was going to slash 3,750 jobs in an effort to cut billions of dollars in expenses.