Worldcom consider 20% staff reduction - report

Telecoms group Worldcom which employs 180 people in its Irish operation will decide on possible job cuts following the completion…

Telecoms group Worldcom which employs 180 people in its Irish operation will decide on possible job cuts following the completion of a business review to be completed this month.

The company recently invested €35 million in its data centre in Clonshaugh, Co Dublin and also runs small offices in Cork, Limerick and Galway.

Media reports in the US have suggested WorldCom is considering cutting 20 per cent of its workforce, or about 16,000 jobs, to cut costs.

USA Todayreports top management is still working on a final proposal for making the cuts and could present it to the board within weeks.

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Many of the cuts will likely come from network operations, a plan that would be in line with WorldCom's recent cuts in capital spending, the report said.

WorldCom declined comment on the reported job cuts and cost savings plan. "We're certainly going to right-size the business but to speculate on details of that would be premature" a WorldCom spokesman said.

Investors are worried that WorldCom will buckle under $30 billion in debt as revenue for long-distance and data services continue to fall.