A local WorldCom spokesperson told ZDNet Australia that employees will not know their fate until tomorrow.
Heading the exodus is WorldCom's chief financial officer Scott Sullivan, following revelations almost US$4 billion had been improperly accounted for on the telco's reported balance sheets during the past five quarters.
This saw the share price lose over a fifth of its value, closing at US$0.83, and then plummeting a further 58 percent in after-hours trading to US$0.35, fuelling speculation of possible bankruptcy.
"I want to assure our customers and employees that the company remains viable and committed to a long-term future. Our services are in no way affected by this matter, and our dedication to meeting customer needs remains unwavering," WorldCom CEO John Sidgmore said in a statement.
In addition to the layoffs, WorldCom is exiting the wireless resale business, which it claims will save US$700 million annually. It is also exploring the sale of a series of non-core businesses, including other wireless assets and certain South American assets.
So far no indication has been given that Australian ISP OzEmail, which is owned by the troubled telco, is up for sale.
-The only thing we can say is it's business as usual," OzEmail spokesperson David Bathur told ZDNet Australia.
In its statement, WorldCom said that Arthur Andersen, which also came to notoriety in the Enron collapse, had audited the financial statements in question. Its current auditor is KPMG. On Monday, after being notified of the results of WorldCom's internal audit, Andersen said its audit reports for 2001 and the first quarter of 2002 "could not be relied on," according to the WorldCom statement.
WorldCom said that it would release unaudited financial statements for 2001 and the first quarter of 2002 "as soon as practicable," and that it would release audited statements as soon as a new audit is performed.
