WorldCom scales back global operations

In a move that it says emphasizes profitability over growth, WorldCom has decided to cut back its operations in Europe, the Middle East and Africa.

The cuts, the company says, will allow these operations to remain fully funded and maintain their guidance of being cash flow positive in 2003.

As part of the decision, WorldCom will cut certain “unprofitable” products, while maintaining its retail and wholesale voice, IP and data services and centering its European network around its existing geographic footprint.

According to a WorldCom spokeswoman, the company is currently evaluating its portfolio and consulting customers to decide exactly which products will be cut. The company will not pull out of any countries and will honor all existing contracts for discontinued products.

“What we’re doing is reviewing our products and services before making any changes,” said the WorldCom spokeswoman.

As a result of the decisions, WorldCom will reduce its workforce by 2000, leaving it with 6000 employees in these regions. The hardest hit geography will be the UK, which will see about 750 job cuts.

The company declined to quantify the savings that would be generated by the move and what, if any, charges the company would take.