More layoffs at WilTel Communications

Friday, November 15th 2002, 12:00 am

By: News On 6

WilTel may be the new company that emerged from Williams Communications bankruptcy, but its not out of financial trouble altogether. We have reports that WilTel plans to layoff more employees.

News on Six business reporter Steve Berg has talked with people inside the company who have firsthand knowledge of layoffs. The company itself though is very tight-lipped. Sources tell us that the new CEO Jeff Storey sent workers a video message about a week ago, warning them of future cutbacks. And they tell us that some of them happened Friday.

The New York based company, Leucadia, now controls a large share of WilTel. Local investment manager Fred Russell says people who know Leucadia, know they have a no-nonsense approach to layoffs. "A very tough unemotional cold, factual, analytical approach to things they see where they can cut costs with people, with technology. I'm not saying that they do anything wrong or that they're brutal, but they're awfully tough."

WilTel would not confirm the reports of layoffs. They referred us to their latest filing with the SEC, which says more layoffs are likely.

So the exact number here in Tulsa is still a mystery.