Bankrupt MCI cuts 7% of its workforce

By Matthew Barakat
Associated Press

McLEAN, Va. — Bankrupt telecommunications company MCI said yesterday it is cutting 4,000 jobs — more than 7 percent of its workforce — and closing three call centers because of cost-cutting pressures and fallout from the Do Not Call registry.

The company announced in January that it was expecting to reduce overall costs by 15 percent to 20 percent, but did not mention specifically that jobs would be cut.

The centers being closed are in Denver, Phoenix, and Niles, Ohio. Jobs also are being reduced at MCI facilities in Alpharetta, Ga.; Colorado Springs, Colo.; and Springfield, Mo.

"As a result of the impact of federal and state 'Do Not Call' laws, as well as ongoing telecom market trends, we need to take this action in order to improve our overall cost structure," the company said.

MCI entered bankruptcy in July 2002 after an accounting scandal that resulted in billions of dollars in overstated profits and criminal charges against its top executives.

MCI employs about 54,000 people. In Phoenix, about 850 workers will lose their jobs. In Denver, about 950 will be laid off and 650 workers will be laid off at the Niles call center, according to the company. Layoff numbers for the other three centers were not available.

The cuts will take effect in May and June.