Worldcom, the telecoms firm which is the subject of a Securities and Exchange Commission investigation, will shed 10 per cent of staff to cut costs.

But the debt-laden company has no plans to exit either the Irish or the European marketplace, according to its senior vice president in the region.

Ms Lucy Woods, who acts as head of sales and is the senior WorldCom executive for Europe, Middle East and Africa, said 10 per cent of the firm's 180 staff here would lose their jobs as part of a restructuring.

These job cuts were necessary due to capital constraints at the company and would eliminate some existing overlapping positions, she added.

This 10 per cent figure is substantially less than the 20 per cent or 16,000 headcount reduction being sought by the firm globally, according to recent media reports. Ms Woods would not comment on any further WorldCom redundancies in other European countries.

Ms Woods - who worked previously as head of BT Northern Ireland and oversaw the establishment of Ocean here - admitted there were some issues with the perception of WorldCom.

She said, however, it was not all industrial doom and gloom and she was optimistic about the company's future.

WorldCom has amassed debts of $30 billion (€30.9 billion) and is in serious financial trouble. Last week the firm had its debt rating slashed to junk status by several ratings agencies who doubt its ability to meet repayment schedules to banks.

Its reputation has also been tarnished by the Securities and Exchange Commission inquiry which is investigating the firm's accounting, customer sales and loans to its former chief executive, Mr Bernie Ebbers.

Ms Woods confirmed the company's European operations had supplied documents to the firm.

"I don't believe we've anything to hide and we didn't do the type of capacity swaps which other telecoms firms did," she added.

WorldCom's new chief executive, Mr John Sidgmore, will announce WorldCom's new strategy within weeks.

But Ms Woods said the company was committed to its international operation, despite initial rumours that it could be sold in the restructuring.

"There is no intention at this stage to move out of countries in Europe.

"We see Europe, the Middle East and Africa as central to our strategy," said Ms Woods.

"We don't face the same economic issues as in the US, and we are outperforming our competitors."

"WorldCom's Europe, Middle East and Africa operations have completed their network builds and are not dependent on large capital injections... In the US its harder for \ to grow than it is to grow in Europe."

Despite the massive capital constraints on WorldCom, the firm will invest $300-$400 million in the Europe, Middle East and Africa.

And Ms Woods said millions of dollars would be invested in Ireland.

WorldCom's operations in the Republic increased revenues to £15.96 million during 2000, up from £9.4 million in 1999, according to figures supplied by the firm. But it is not clear if its operations are currently making a loss. In 1999 the firm lost £1.19 million, according to filings in the Companies Registration Office.

"Ireland is one of our mid-range countries, not one of our biggest revenue earners but very important because of US multinationals," said Ms Woods.

However, she said the firm would only invest capital in countries where the firm could get a good return and the regulatory conditions were supportive.

"Ireland was not top of the list on this point due to WorldCom's past relationship with Eircom," she said