WorldCom is to slash around 2000 jobs in Europe. Following the cuts, WorldCom will employ around 6000 people in the Europe, Middle East and Africa (EMEA) region. The company claims that its Europe, Middle East and Africa (EMEA) operations will continue to be fully funded and are expected to be cash flow positive in 2003.
WorldCom said it has developed a business plan that emphasizes profitability over revenue growth, consolidates the European network around its existing geographical footprint and offers streamlined voice, data and Internet services.
We have made significant infrastructure investments in EMEA over the past few years, said John Sidgmore, WorldCom president and CEO. We plan to leverage this solid foundation to ensure our long-term viability in this critical business region of the world. We believe our focus on profitability, coupled with a customer-centric approach, will be a win-win for WorldCom and those with whom we do business.
Core elements of WorldCom’s new EMEA business plan include:
Restructure and refocus the business to reflect current market conditions and the size and needs of the existing WorldCom EMEA network.
Maintain core retail and wholesale voice, IP and data services while discontinuing certain unprofitable niche products.
Reduce EMEA workforce to approximately 6,000 through a reduction of approximately 2,000 (subject to consultation with Works Councils).
Minimal new infrastructure investment.
With our world-class global assets, the ability to service new and existing customers as well as ever before, and a solid financial foundation, WorldCom EMEA continues to provide a leading competitive alternative to the marketplace, said Lucy Woods, WorldCom EMEA senior vice president. Most importantly, our new approach will have a positive effect on our existing customers while allowing WorldCom EMEA to be better positioned for the future.
WorldCom CEO John Sidgmore announced last week that he intends to leave the post shortly.