15,000 jobs to go if Qwest/MCI gets green light
Still, it would 'unlock value from each standalone firm'
Up to 15,000 jobs would be lost if Qwest succeeds in snapping up MCI. Details of the job cuts were outlined in a slide presentation posted on Qwest's web site covering the telco's bid to acquire MCI.
Qwest claimed should it scupper the £6.7bn Verizon/MCI deal agreed two weeks ago, its proposals would create a "superior combination" giving those involved a "unique opportunity to unlock value from each standalone firm".
Part of that will be generated by the estimated $2.5bn - $2.9bn in annual savings that Qwest reckons the merger will generate. And a substantial part of this would be down to a proposed reduction in the combined workforce of between 12,000 and 15,000 representing around 15 per cent to 18 per cent of the workforce.
Qwest employs around 41,000 employees. MCI has a similar number.
Verizon has already said that its proposal to acquire MCI would lead to around 7,000 job losses.
In January US telecoms giant SBC announced plans to acquire former parent AT&T for $16bn (£8.5bn). As part of that deal it's expected that 13,000 workers would face the axe. ®
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