Alcatel Plans to Consolidate U.S. Operations, Cut 900 Jobs The Associated Press Published: Jun 1, 2001

DALLAS (AP) - French telecommunications giant Alcatel SA said Friday it would consolidate some North American operations and cut 900 jobs over the next few months. The company said it would close a Portland, Ore., plant that makes fiber-optic cables for underwater lines and shift the work to plants in France and Australia. About 480 jobs would be lost.

The company will also close laboratories in Milpitas, Calif., and Andover, Mass., that develop products for phone company networks. About 300 jobs will be lost in Milpitas and 125 in Andover, a spokesman said.

"With business conditions in the U.S. remaining tough, the need to continue to cut our operating costs remains important," said Mike Quigley, president of Alcatel Americas.

The closings are expected to be completed before the fourth quarter. Specific cost-savings figures were not released.

Earlier this week, Alcatel said it expects a second-quarter loss of $2.6 billion and dropped its bid to buy U.S. rival Lucent Technologies Inc.

The company notified Oregon employees of the layoffs on Tuesday and Wednesday.

AP-ES-06-01-01 1419EDT

-- Anonymous, June 01, 2001

Answers

Internet Communications Provider PSINet Inc. Seeks Chapter 11 Bankruptcy Protection

The Associated Press Published: Jun 1, 2001

ASHBURN, Va. (AP) - Internet communications provider PSINet Inc. filed for protection from creditors under Chapter 11 of the federal bankruptcy laws, citing liabilities that were nearly double its assets. PSINet had said in April that it was likely to file for bankruptcy because of a cash shortage.

The company said Friday that the filings in U.S. Bankruptcy Court in New York covered itself and 24 of its operating subsidiaries in the United States. It said four Canadian subsidiaries filed for protection in the Ontario Superior Court of Justice.

PSINet's operating subsidiaries in Asia, Europe, Latin America and the company's Metamor consulting business are not involved in the Chapter 11 filings.

Ashburn-based PSINet provides corporate Internet access and private networks, Web and database hosting and managed Internet security. PSINet has total assets of $2.2 billion and total liabilities of $4.3 billion, of which $2.9 billion is bond debt.

The company said it expects to continue to serve customers.

"Our existing capital structure did not permit us to respond to the rapid changes in our markets," said Harry G. Hobbs, president and chief executive officer of PSINet. He said he expects the Chapter 11 filing "will provide us with the flexibility and time to explore all strategic alternatives while we continue to deliver the reliable service upon which our customers depend."

The company said it will sell its operations in Canada and Panama if regulators approve. Terms were not disclosed.

PSINet is paying the Super Bowl champion Baltimore Ravens $5.275 million a year for 20 years for the right to put its name in giant purple letters on the Ravens' stadium.

"We are talking openly with the team, but there is no change in our relationship," PSINet spokesman Jim Lucas said Friday. Ravens spokesman Shaka Arnold said the filing is not expected to change the naming arrangment. He would not discuss terms of the deal, including whether the contract with PSINet has a bankruptcy clause.

AP-ES-06-01-01 1412EDT

-- Anonymous, June 01, 2001

Airborne to Cut 640 Employees, Citing Weak Economy The Associated Press Published: Jun 1, 2001

SEATTLE (AP) - Airborne Inc., the holding company for shipping service provider Airborne Express, said Friday it will lay off 640 employees, or about 2.5 percent of its work force, due to slumping business. The first layoffs in the company's 55-year history will be across the board and are expected to trim $26 million to $28 million in costs annually, the Seattle-based company said in a statement.

"This decision, certainly one of the most difficult and painful Airborne has ever made, was necessitated solely by the continuing drop in customer shipping that has affected our entire industry," Airborne president and chief executive Carl Donaway said.

Donaway said the company put off layoff plans, hoping for an economic turnaround that would increase business from its corporate clients. But that has not happened.

"Many of our biggest customers are feeling the economic pinch as painfully as we are," Donaway said. "That's had a significant, negative impact on Airborne's revenues over the last six months."

Airborne will take a one-time charge estimated at $3.1 million to $3.6 million in the second quarter for severance packages and other restructuring costs.

Shares in Airborne were up 11 cents to $11 in afternoon trading on the New York Stock Exchange.

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On the Net: www.airborne.com

AP-ES-06-01-01 1612EDT

-- Anonymous, June 01, 2001