McLEAN, Va. (AP) -- MCI plans to eliminate 7,500 jobs this year--about 15 percent of its work force--to cut costs as it struggles with weak revenues that resulted in a quarterly loss of $388 million, the company said Monday.
The company's release of quarterly earnings was the first for the company since it emerged last month from nearly two years of bankruptcy protection and changed its name from WorldCom.
The $388 million, or $1.19 per share, loss compared to a net profit of $52 million in the year-ago quarter. The company said the weaker performance stemmed from the intense competition on prices within the industry, resulting in lower revenues.
"Although we made significant strides in restructuring the company during the past year, overall industry conditions and an unfavorable regulatory environment affected our first-quarter results," said Michael Capellas, MCI president and chief executive officer.
The company said it expects to eliminate 7,500 jobs in the second half of the year. MCI employs about 50,000 workers, and in March announced layoffs of about 4,500 workers.
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