WorldCom says it is committed to Irish operation

WorldCom today said the company was committed to its Irish operation following revelations that its parent company has uncovered improper accounting for $3.8 billion.

However, it was unclear how the financial scandal would impact on the company’s business here.

The US-based telecommunications company currently employs 180 people at a headquarters in Dublin and three regional offices Cork, Limerick and Galway.

A spokeswoman for the company told ireland.comthat as far as she was concerned "it was business as usual".

She declined to comment on the present crisis saying the company had been told to refer all inquiries to its US head office.

The company operates a fibre optic network in Dublin linked to a number of business parks around the country.

Recently the company announced plans to shed 10 per cent of its workforce here as part of global restructuring plan aimed at saving the debt-laden company $900 million a year.

This 10 per cent figure was substantially less than the 20 per cent or 17,000 headcount reduction being sought by the firm globally.

Last week the firm’s European vice president, Ms Lucy Woods, said the company had supplied documents to the US Securities and Exchange Commission inquiry which is investigating the firm's accounting procedures.

Ms Woods said company was committed to its international operation, despite initial rumours that it could be sold in the restructuring.

WorldCom's operations in the Republic increased revenues to £15.96 million in 2000, up from £9.4 million in 1999, according to figures supplied by the company.

It is not clear if its operations are currently making a loss. In 1999 the firm lost £1.19 million, according to filings in the Companies Registration Office.