MCI Worldcom said 2,000 employees are to be told today they are being made redundant as the company eliminates duplication following its recent merger.
Employees will leave the company by the end of the month, although some will be offered positions inside other parts of the business. No jobs outside the US are being cut or in the rapidly expanding Internet business unit.
"These job eliminations are occuring primarily in our network operations organisation and are the result of an extensive review we have undertaken to determine duplication within the newly merged organisations," said Jamie Depeau, director of corporate communications at MCI Worldcom.
Depeau admitted the review was still underway and that further duplication could be eliminated if found, but said no further significant cuts were expected in the near future. International and Internet businesses were growing so fast that they were taking on staff, she added.
MCI's $37 billion takeover by Worldcom was completed nearly three months ago, at which time Bernard Ebbers, chief executive of MCI Worldcom, promised quick action to cut costs. He said between $2 billion and $3 billion is to be cut from overheads through integrating the two network infrastructures and cutting staff.
MCI Worldcom announced at Comdex last month it was to roll out the first national broadband network in the US to provide high speed Internet access. (see Newswire 19 November 1998)
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