360networks will cut nearly half its worldwide workforce, or 800 jobs, to control operating costs, it says. The cuts affect jobs in North America, Europe, South America and Asia.
President and CEO Greg Maffei cited a "very challenging telecom environment and our need to operate as cost-efficiently as possible."
The company has been building a fiber optic network slated for mid-2002 completion. The network will run 89,000 miles and link more than 100 major cities with terrestrial routes and undersea cable systems, the company reports. The network is expected to link North America, Europe, South America and Asia.
The company in May scaled back development of undersea networks in the Asia-Pacific region, and purchased $150 million of broadband capacity on existing networks in the region instead. It also revised its 2001 guidance by reducing its planned capital expenditures from $3.5 billion to $4 billion, to $2.2 billion to $2.4 billion.
Earlier this month, it announced it wouldn't make a $10.9 million interest payment that was due and noted it could be in default if it didn't meet the payment in 30 days. At that time, 360networks also aborted a plan to acquire NetRail.