MCI WorldCom to Reduce Work Force by Up to 2,300

Newly merged MCI WorldCom Inc., the nation’s No. 2 long-distance telephone company, plans to cut up to 2,300 jobs, or 3% of its work force, in an effort to trim $2.5 billion in expenses in 1999, sources familiar with the company said Thursday.

MCI WorldCom, created in September by WorldCom Inc.’s $40-billion acquisition of MCI Communications Corp., declined to comment specifically on the expected job cuts.

“The company has previously said it would take a careful review of the combined organization. While that review is ongoing, it is premature to comment” on potential job losses, MCI WorldCom spokeswoman Jamie DePeau said.

The Jackson, Miss.-based company aims to cut 770 to 2,300 jobs from its work force of 77,000, the sources said.

The job losses would come “sooner rather than later,” one source said.

Investors cheered signs the company appeared to be on track with its cost-cutting plans, industry analysts said.

MCI WorldCom had said it expected to cut $2.5 billion in expenses in 1999, and $5.6 billion by 2002. Savings will come from transferring customer voice and data traffic from networks MCI and WorldCom had leased to networks they now own together.

“While we are cutting costs in areas like the network and line costs, we are executing an aggressive plan to grow the company--with new products, services,” DePeau said.

As the company expands in faster-growing businesses--such as data, Internet and international--MCI WorldCom expects to add to its total work force over time, DePeau said.

MCI WorldCom also plans to cut expenses by streamlining duplicate legal, accounting and human resources functions.

MCI WorldCom shares inched up 9.4 cents to close at $62.75 on Nasdaq.