WorldCom Inc. is expected to announce plans to lay off more than 10,000 employees, or 13 percent of its worldwide workforce of 77,000, as the company seeks to cut costs at some of its slow-growing businesses, people close to the company said.
The company, the second-largest long-distance carrier after AT&T, is facing slower growth in businesses such as long-distance, wholesale and dial-up Internet service. Some of the job cuts would take place in these areas, as well as in human resources, finance and sales, people close to the company said.
The layoffs at WorldCom, which are expected in the next few weeks, are part of a downsizing wave in the communications industry. Some small companies, such as ICG Communications Inc. and NorthPoint Communications, have fired employees as they entered bankruptcy proceedings, while larger companies like Lucent Technologies, AOL Time Warner and Motorola have announced plans for layoffs in recent weeks.
WorldCom’s troubles appear to stem largely from fierce competition.
