November 13, 2002 — (WEB HOST INDUSTRY REVIEW) — Communications company Cable & Wireless reportedly plans to shed 19 of its 42 data centers worldwide, including 12 in the US, as part of its efforts to restructure its global unit.
The restructuring will eliminate 3,500 jobs in the unit, which includes Exodus and Digital Island. The company will limit its US business operations to focus on multinational enterprise and service providers.
Cable & Wireless did not announce which data centers it would divest, but plans to withdraw in phases over a 12 month period. The company said that in the future, its us network would likely be concentrated in major markets where multinationals are most likely to operate.
C&W shares lost a third of their value in London after the announcement was made, with investors there expressing dissatisfaction over the scope and cost of restructuring.
