WorldCom cuts overseas

By Susan Rush
From The September 16, 2002 Edition Of CED Broadband Direct

Looking to ensure its overseas operations continue to be fully funded, WorldCom Inc. has plans to reduce its foreign work force by 2,000.

WorldCom EMEA, WorldCom's Europe, Middle East and Africa operations, has devised a new business plan that will emphasize "profitability over revenue growth" and consolidate The company will carry out its plan with minimal new infrastructure investment, while maintaining core retail voice, data and Internet services it provides to business customers. The plan calls for a 25 percent staff reduction.

The EMEA division is fully funded and expects to be cash flow positive in 2003.

In July, WorldCom Inc. filed for bankruptcy protection, after revealing it has misreported $3.8 billion in expenses. In August, that number ballooned to more than $7 billion after WorldCom officials said they uncovered another $3.8 billion in accounting errors.

Last week WorldCom said it is in the market for a new CEO to help guide it through its bankruptcy proceedings. Interim CEO John Sidgmore said he will step down once a replacement is found and will return to his post as vice chairman. WorldCom expects to emerge from bankruptcy in the middle of 2003.