Equant to cut 3,000 jobs

July 2, 2001 Posted: 1035 GMT

LONDON (CNN) -- Dutch-based data network operator Equant plans to slash 3,000 jobs, having completed its merger with Global One, a report said on Monday.

Global One is a unit of France Telecom, (FTE) which bought Equant last November for $3.5 billion.

Equant plans to cut 23 percent of its 13,000 workforce in the UK and France following the completion of its merger with Global One last week, French financial daily Les Echos reported, citing an Equant director.

The company is not likely to make an official statement, however, until consultations have taken place with employees, the report said.

Equant, which plans to boost its position as a provider of Internet Protocol and corporate data communications, has forecast that core earnings before one-time items should turn positive in the fourth quarter.

Equant was first formed as an airline reservation network, although its data-carrying capacity has since been substantially upgraded.

Global One was a joint venture with Deutsche Telekom and Sprint until the partners fell out acrimoniously and France Telecom took total control.

At the time of the Equant-Global One merger,  the companies said the combination would generate more than $300 million in annual cost savings within three years.

Shares in Equant (EQU)  rose 0.75 percent to 21.4 on the Paris stock exchange on Monday. Equant (ENT: Research, Estimates) is also listed in New York.

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