WorldCom to shed 10% of Irish workforce

WorldCom is to shed around 20% of its staff worldwide and, according to reports, will cut about 10% of its staff in Ireland.

The cuts are an attempt to reduce further its capital spending in 2002 and to lower its cost structure.

Last week the company announced that it would be deferring the quarterly interest payment on the 8% cumulative QUIPS issued by MCI Capital and following this announcement its debt rating was cut.

According to a report, telecommunication equipment multinational Nortel is to cut 200 out of a total of 1,000 jobs at its plant in Monkstown, Northern Ireland.

Job cuts were not unexpected as in May the company announced it was to cut 3,500 jobs worldwide.

In total, the company has cut about 50,000 jobs, more than 50% of its workforce in the past year.

Major job cuts have already been made at its plant in Monkstown.

In Ireland the company also has a research and development facility in Galway.