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CNN Live Today
WorldCom to Lay Off Thousands
Aired June 28, 2002 - 12:05 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: And now, to the WorldCom debacle, and the jobs that thousands of WorldCom employees won't be going back to on Monday. Tim O'Brien is at the telecommunication giant's offices in Arlington, Virginia. Tim, how are employees facing this new fallout?
TIM O'BRIEN, CNN CORRESPONDENT: Well, this is a very grim time for most of the 17,000-some employees who are losing their jobs, half of them, we understand, today. It's is not a happy time, here, at MCI. The office building, MCI being a major subsidiary of WorldCom. Some employees told us, however, that they're happy to get out now. They see the future of WorldCom as not that bright. They are getting severance packages. Some we saw being told today the job is over. They're leaving with boxes full of their office supplies. Others are being told that they have another two months on the job. There is severance. A little over a half an hour ago, we spoke with Shawn Riggins who worked in accounts payable at MCI. He was given his notice, this morning. Riggins was more philosophical than he was bitter.
(BEGIN VIDEO CLIP)
SHAWN RIGGINS: I'm gone.
O'BRIEN: So, you work for two weeks, then, you get ...
RIGGINS: No, no, no. I get two weeks -- I get two months of just (UNINTELLIGIBLE). I'm on the payroll for two months, and then after that, myself severance kick in.
O'BRIEN: And how much is the severance?
RIGGINS: That's 12 weeks.
O'BRIEN: Are you happy?
RIGGINS: Yeah, I'm pretty happy.
(END VIDEO CLIP)
O'BRIEN: Well, of course, most are not happy. There is collective outrage on Capitol Hill, and at the White House. We heard President Bush, yesterday, saying he was stunned, surprised and outraged, and we received a letter today from WorldCom President John Sidgmore that was sent to the President in which he says the following, "We, the current management team, are equally surprised and outraged," -- this is a letter to President Bush -- "that's why we immediately brought this matter to the attention to the Securities and Exchange commission and the public."
The company did voluntarily provide this information within hours of its discovery, it seems. Sidgmore says that the company management accepts responsibility, and he promised that they would take decisive action, and he pledged cooperation with federal regulators and prosecutors.
WHITFIELD: All right. Tim O'Brien, thank you very much. Appreciate it.
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