Winstar to Cut 2,000 Jobs:

Winstar Communications Inc., an unprofitable telephone company whose stock has plunged 99% in the last year, will cut 2,000 jobs immediately, a 43% reduction, and halt network construction for this year to conserve cash. New York-based Winstar borrowed heavily to finance construction of its wireless network to compete against Verizon Communications and others for corporate phone and data-service customers. Winstar has $6.3 billion in debt and preferred stock and might have trouble paying creditors if it can’t raise more money. Winstar shares rose 3 cents to close at 44 cents in Nasdaq trading. The company’s market value has tumbled to $40 million from $5.67 billion a year ago. Winstar sends and receives information using pizza-box-size dishes mounted on buildings. The company secured $1 billion in new financing in November and has said it has money to last into the first quarter of 2002. Winstar has 4,700 employees. Separately, Qwest Communications International Inc. said it has no plans to buy or invest in Winstar.