WorldCom Inc. said on Monday it was axing 25 per cent of its overseas staff and accelerating an overhaul in order to make its international arm cash flow positive in 2003. WorldCom EMEA, the European, Middle Eastern and African operations of the stricken US telecoms operator, said the bulk of around 2,000 job cuts would fall in Europe, where its main operations are in Britain, France and Germany. Clinton, Mississippi-based WorldCom filed for the world’s largest bankruptcy on July 21 after disclosing that it had inflated its profits by improperly booking $3.85 billion in expenses. The company uncovered another $3.8 billion in accounting errors in August. However, WorldCom EMEA will still be funded after putting forward a business plan vowing to slash jobs, discontinue unprofitable niche products, invest minimally in new infrastructure, cut annual capital expenditure of some $200 million by around 20 per cent and review all running expenses. WorldCom will continue to fund its overseas, corporate telecoms services division until WorldCom EMEA hits cash flow positive status, which it will now reach at least six months earlier than initially planned. “It’s never pleasant to announce job cuts,” Lucy Woods, Senior vice president, WorldCom EMEA, told Reuters. “We have created a business plan which we’ve worked through with WorldCom’s management and the restructuring partners, who are now part of the team. So everyone is confident and convinced,” she added.
