Global Crossing Adds to Job Cuts
Global Crossing Ltd. said Tuesday it would slash an additional 1,200 jobs after posting a dramatically wider third-quarter loss.
The Hamilton, Bermuda-based owner of a worldwide phone and data-transmission network said revenue was dampened by rising expenses, investment write-downs and falling prices for telecommunications services.
In the three months ended Sept. 30, Global Crossing lost $3.4 billion, or $3.84 a share, compared with a loss of $544 million, or 69 cents, during the same period in 2000. Revenue rose 1.9% to $792 million.
The loss includes a charge of $2.09 billion related to its investment losses in Exodus Communications Inc., the Santa Clara, Calif.-based Web hosting firm that filed for bankruptcy protection in September.
Global’s 1,200 job cuts represent about 10% of its remaining work force. In August, the company, which has executive offices in Beverly Hills, said it would cut 2,000 jobs and close 100 of its 600 offices.
For the fourth quarter, Global said it expects its continuing operations to generate $825 million to $850 million in cash revenue and $725 million to $750 million in service revenue. The company is anticipating recurring adjusted earnings before interest, taxes, depreciation and amortization loss of $150 million to $175 million.
Analysts surveyed by Thomson Financial/IBES expect Global to lose $3.19 a share in the fourth quarter, and the company said those estimates are reasonable.
Global Crossing’s shares rose 1 cent to close at $1.07 on the New York Stock Exchange before the company announced its results. The stock fluctuated only slightly in after-hours trading.
