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80 Get Layoff Notices at MCI in Clinton, AP Says - Company Finishing 7,500-Job Workforce Downsize Nationally

Posted on: Tuesday, 8 June 2004, 06:00 CDT

An MCI source in the company's Virginia headquarters said that 80 MCI workers in Mississippi, most of them employed in Clinton, were laid off Friday.

MCI announced last month that it would lay off 7,500 employees from its nationwide workforce of 50,000. Most Clinton workers are employed by the SkyTel division.

The company had 3,000 Mississippi employees when it was known as WorldCom, a telecommunications company founded in Mississippi in 1983. WorldCom soared on Wall Street before crashing in an $11 billion securities fraud scandal in 2002. The company scrapped the tarnished "WorldCom" name and became MCI when it emerged from bankruptcy this April.

But MCI's chief executive officer said in May that MCI must save $600 million through job cuts.

MCI workers wavered between shellshock and determination as they lunched in the restaurants lining the road to their 555,000 square feet of offices. Most did not know whether they would have jobs until late afternoon. They asked that their names not be used for fear of affecting whatever job security they might have.

"I always thought I could work my way up the MCI ladder to one of the $60,000-a-year jobs," one worker said as he doggie-bagged half his Applebee's salad for supper. "Now, I don't know if the ladder will be there the next hour."

About 25,000 MCI workers will have lost their jobs since the 2002 WorldCom scandal hit the headlines. MCI spokeswoman Stefanie Scott said the final round of 7,500 layoffs would be complete by the end of June.

"The job cuts were made in all divisions, all income levels, managerial and support staff," Scott said.

Michelle Barnes manages the Pine Trails apartment community near MCI's Clinton complex.

"There are always rumors about MCI layoffs, but this surprises me because I have two MCI managers moving into apartments here in the next two weeks," Barnes said.

She can recall only one tenant who left MCIand the woman quit because her workload was too heavy.

"MCI consolidated five jobs into her position and she said doing five people's work was just too much," Barnes said.

Century 21 broker David Stevens in Clinton helped many MCI workers buy houses over the years.

"Many of them cashed in their stock options when WorldCom was riding high and invested the money in real estate," Stevens said. "My sense is, they're positioned now they can ride out any storm."

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