Teleglobe to Slash Work Force by 450

Teleglobe Inc., a U.S. unit of Canada’s BCE Inc., said it’s eliminating about 450 jobs, or 20% of its work force, and will curtail a plan to build a $3.4-billion international voice-and-data network because of weaker growth prospects in the worldwide telecommunications market.

The Internet communications specialist said it expects annual savings of about $50 million from the reduced head count, which will be concentrated in its facilities in Montreal and Reston, Va. The company will take a charge of $70 million to $90 million in the third quarter.

Teleglobe also slashed capital expenditure plans by $500 million and now expects to spend only $2.9 billion through 2003. This is the second time in the last year Teleglobe has cut capital expenditure forecasts, with an original target of $5 billion.