In response to what it calls "changing international market conditions," Teleglobe is eliminating 450 positions, or approximately 20 per cent of its workforce. The reductions will be primarily centred...
November 1, 2001
In response to what it calls “changing international market conditions,” Teleglobe is eliminating 450 positions, or approximately 20 per cent of its workforce. The reductions will be primarily centred in the carrier’s Montreal and Reston, VA facilities, and will affect the voice business, network planning, operations and general administration areas of its business. Annualized savings from the move are expected to total approximately US$50 million.
Teleglobe also announced it will reduce its capital expenditure plans through 2003 by US$500 million, from US$3.4 billion to US$2.9 billion.
“Given the worldwide deceleration in our industry, selected business operations are being restructured to lower costs, more effectively utilize finite resources and better respond to customer needs,” said Terry Jarman, Teleglobe’s CEO. “The adjustments being made do not signal a change in our strategy or direction but rather a realization of a lower trajectory in our growth forecast.” Jarman says the company will continue to place emphasis on building its network-based services business.