July 17, 2003 — (WEB HOST INDUSTRY REVIEW) — XO Communications, Inc. (xo.com) will lay off 500 employees by the end of the year in order to consolidate its operations, according to a report in the Washington Post. The 500 employees represent nearly 10 percent of the Reston, Virginia-based telecommunications carrier’s work force.
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The cuts will come from the marketing, finance and human resources divisions as the company also revealed that it plans to add 300 sales staff by late August.
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According to the report, XO will further consolidate its operations by reducing its installation centers in half from eight to four and cutting its network operations centers from four to two. The four customer-base centers will remain.
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The moves come amid XO’s bid to purchase bankrupt carrier Global Crossing (globalcrossing.com).
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In recent weeks, XO chairman Carl Icahn has upped his offer to $700 million, including $250 million in cash.
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Global Crossing, who filed for bankruptcy in January 2002, has a standing offer from Singapore Technologies Telemedia (stt.com.sg). However, the purchase had been delayed amid concerns over foreign ownership of key U.S. telecommunications assets.
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The STT bid hit a further roadblock last week as the Pentagon and Department of Homeland Security expressed its concerns about the deal.
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The U.S. Committee on Foreign Investment must approve all deals involving foreign entities.
