WorldCom May Cut 11,000 Jobs

WorldCom plans to reduce its staff by cutting 11,000 jobs. The layoff is part of a larger effort to refocus the company. This layoff would be the second time the company has let workers go.

WorldCom, which employs more than 77,000 worldwide, is separating its healthier business-related operations from its struggling MCI long-distance brand and calling card operations.

The layoffs are expected to be announced Feb. 8 when WorldCom releases its fourth quarter earnings.

In November, WorldCom announced plans to create a new tracking stock to separate its healthy business units from those that have floundered because of increasing competition among long-distance and wireless phone companies. The new tracking stock, which will pay a dividend, is expected to be distributed to WorldCom shareholders during the first half of 2001. The tracker will be called MCI and trade under the symbol MCIT.

WorldCom, like AT&T and Sprint, has been battered by long-distance price wars and new competition from wireless phones and technology that enable calls to be placed over the Internet.

WorldCom is hoping to contain that weakness within the new tracking stock so it won't tarnish the financial performance of the company's more profitable business of transporting data for companies.