MCI announces job cuts totaling 7,500

(Ashburn-AP) -- MCI says it will eliminate 7,500 jobs this year in an attempt to cut costs in the face of weak revenues. <br/><br/>The job total represents about 15% of the telecommunications company&#39;s

Monday, May 10th 2004, 5:07 pm

By: News On 6


(Ashburn-AP) -- MCI says it will eliminate 7,500 jobs this year in an attempt to cut costs in the face of weak revenues.

The job total represents about 15% of the telecommunications company's total work force.

The company reported a loss of $388-million in its first quarterly earnings report since it emerged last month from nearly two years of bankruptcy protection.

The loss compared to a net profit of $52-million in the year-ago quarter. The company says the weaker performance stems from the intense competition on prices within the industry, resulting in lower revenues.

The company expects to eliminate all 7,500 jobs in the second half of the year. The company employs about 50,000 workers, and announced layoffs of about 4,500 workers in March.

The company did not specify what jobs would be cut and what locations would be affected.

MCI estimates that the layoffs and other cost-cutting would allow the company to return to profitability in the second half of the year.
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