Feeds

MCI to axe 7,500 jobs

Blames 'adverse industry environment'

  • alert
  • submit to reddit

Intelligent flash storage arrays

MCI - formerly known as WorldCom - is to axe 7,500 jobs as it struggles to make its way in an "adverse industry environment". This latest round of job losses comes just six weeks after the global communications outfit revealed plans to erase 4,000 jobs from its operation.

News of the job losses came as the company reported its first quarter (Q1) results - the first since it emerged from Chapter 11 bankruptcy protection last month after spending the last two years clearing up the mess left behind from a damaging accounting scandal.

MCI's revenue during the first three months of the year fell to $6.3bn (£3.6bn) compared to $7.2bn (£4bn) a year earlier. The company also ran up an operating loss of $205m (£116m) for the first quarter, compared to an operating profit of $634m (£359m) during the same period last year. It made a net loss of $388m (£220m) in Q1 '04, compared to net income of $52m (£29m) in 2003.

MCI blamed this loss on declining revenue, "caused in part by industry pricing", which reflected the "adverse industry environment, as excess capacity and new technology adoption continue to pressure pricing". The job cuts earmarked for the next three months are just one way MCI reckons it can cut costs and return to profitability in the second half of the year.

Said boss Michael Capellas: "Although we made significant strides in restructuring the company during the past year, overall industry conditions and an unfavorable regulatory environment affected our first quarter results. In response we are accelerating our cost reduction program, ramping new product introductions and optimizing our network wherever possible." ®

Related stories

MCI breaks free from Chapter 11
MCI to axe 4,000 US jobs
WorldCom gets sums wrong by $74bn
AT&T threatens MCI with price war

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.