WorldCom is to cut 6% of its workforce in its main business services division. The US telecommunications operator will make 3,700 workers redundant in its latest response to the difficult long-distance and data communication market.
WorldCom has also said that it will redeem $700 million of bonds issued by MCI Communications, its independently listed consumer long-distance business. The repurchase follows concerns that cash shortages would force WorldCom to cut the dividend paid to MCI’s shareholders.
WorldCom’s cash position is improving. The company had $2.2 billion in cash at the end of May, compared to $1.4 billion at the end of 2001, however its total debt still stands at $30 billion.