US telecoms operator WorldCom`s layoff of 2 000 employees in its European, Middle East and Africa (EMEA) operations will not impact its local internet service provider, UUNet, which will hold onto all of its 300 staff.
Reuters reports that WorldCom is to axe 25% of its overseas staff in an attempt to get a positive cash-flow from its foreign operations by 2003.
WorldCom says 750 of the 2 000 planned job cuts will fall in Britain. Most of the remainder are to be in France and Germany, with EMEA staff levels falling to about 6 000 after the cuts.
UUNet MD Dave Meintjes says the 300 UUNet staff will not be affected by the staff cuts, even though it does fall under the EMEA operations.
"There is no reason to cut staff at UUNet. We have always run a tight and successful business and so we are being left out of it," he says.
Meintjes says WorldCom continuously reviews its overseas operations and is well aware of UUNet`s success.
WorldCom filed for the world`s largest bankruptcy on 21 July after disclosing that it had inflated its profits by improperly booking $3.85 billion in expenses. The company uncovered another $3.8 billion in accounting errors in August.
It has until 20 November to announce its first phase of restructuring as it tries to stave off creditors.
However, WorldCom EMEA operations will still be funded after putting forward a business plan vowing to slash jobs, discontinue unprofitable niche products, invest minimally in new infrastructure, cut annual capital expenditure of about $200 million by about 20% and review all running expenses.
WordCom`s EMEA division generated annual turnover of almost $3 billion per year. Its headquarters are in Reading, west of London, and it operates in 25 countries. It provides voice, data and Internet services to business customers.
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