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MCI WorldCom cuts jobs
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December 10, 1998: 7:09 a.m. ET
Telecom giant to layoff 3,750 as cost-cutting program takes shape
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NEW YORK (CNNfn) - Newly-formed telecommunications giant MCI WorldCom Inc. reportedly plans to cut 3,750 jobs as part of wide-ranging cost-cutting initiative.
According to The Wall Street Journal, the layoffs, which represent 3 to 5 percent of the company's 75,000 work force, are likely to be announced later this week.
The restructuring was prompted by the completion of WorldCom's $37 billion merger with MCI last month. The company had said earlier it would cut costs by $2.5 billion in 1999 as part of the agreement.
The job cuts primarily will take place in areas where there is duplication between the two joining companies, the Journal reported.
Most savings will be achieved by combining the MCI and WorldCom networks, a step that will reduce the cost of transmitting voice and data traffic, the paper said.
The Jackson, Miss.-based company also plans to reduce general overhead costs, including executive perks and travel expenses. The company hopes to reduce overhead costs by as much as $900 million next year, the Journal said.
Shares of MCI WorldCom (WCOM) closed down 7/32 at 62-21/32 Wednesday. 
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MCI WorldCom
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