telecom@eecs.nwu.edu (TELECOM Moderator) (11/19/90)
MCI has announced a major cutback in their staffing. This cutback, which is underway now and will continue through the first of the year, will see several thousand employees dismissed as the company reorganizes itself in the competitive long distance market. Until now, MCI has had seven divisions. These divisions roughly covered the same geographical territory as the seven Bells. At one time, MCI thought it in their best interest to set up their offices in such a way that they could monitor and quickly respond to actions by the Bells and their former parent, AT&T. The re-organization now underway will result in four divisions of MCI. A division will remain here in Chicago, as well as one on the east and west coasts, and (most likely) in Texas, covering the southern USA. Employees were notified beginning last week that they ought to expect many of their colleagues to be terminated by the first of the year -- including possibly themselves. There are some new jobs available in the remaining divisions of the company, but it is not likely there will be a job for everyone or even most of the excess employees. MCI has had financial problems over the past year. For two quarters in a row they had to take charges on their books. The purchase of Telecom*USA also set them back considerably. They had to borrow that money, and the lenders are now getting a little nervous. Look for a whole new organization at MCI after the first of the year. The terminated employees total about six percent of their entire payroll. Patrick Townson