Apr 4, 2002 By John Porretto Ap Business Writer 2 min read

JACKSON, Miss. (AP) – WorldCom Inc. plans to eliminate as many as 7,500 jobs, or 10 percent of its global work force, in an effort to revive profits, company sources familiar with the plans said Wednesday. The cuts could come as early as Wednesday and would be focused primarily on WorldCom Group, which includes the Clinton-based telecommunications company’s high-growth data, Internet and international businesses, said the sources, who spoke on condition of anonymity.

WorldCom also is the nation’s second-largest long-distance provider.

The layoffs had been planned for last week, but WorldCom president and chief executive Bernie Ebbers postponed the move at the last minute for unspecified reasons, the sources said.

Spokeswoman Claire Hassett said Wednesday she had no information regarding a companywide layoff.

“We have not made an announcement,” she said.

Analyst Ramkrishna Kasargod with Morgan Keegan & Co. in Memphis said WorldCom, like others in the telecom industry, is responding to lingering sluggishness in the sector.

He said investors continue to have concerns about overcapacity and profitability.

WorldCom’s worries also include some $24 billion in debt and an ongoing Securities and Exchange Commission investigation into its accounting as well as loans made to executives.

“When you look at all those concerns and the fact the sector is under pricing pressure, I suppose it would make sense to see companies try to reduce costs,” Kasargod said. “It’s the prudent thing to do.”

WorldCom’s last major job reduction came a little more than a year ago when the company laid off about 6,000 U.S. employees.

Lehman Bros. analyst Blake Bath on Wednesday lowered his revenue growth forecasts based on tougher-than anticipated demand and pricing and predicted the company would announce significant capital expenditure cuts as well as job reductions in the coming weeks.

The company said last month the SEC had requested documents regarding loans and financial practices dating to 2000.

The inquiry focuses on disputed customer bills and sales commissions, loans by WorldCom to officers or directors, customer service contracts and organizational charts and personnel records for former employees.