SWIFT Anxious as Global Crossing Downsizing Begins

How much longer can SWIFT delay switching network services from Global Crossing to a new provider? Not much longer. With news today that Global Crossing is trying to shrink its US payroll with a voluntary redundancy package, it would be

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How much longer can SWIFT delay switching network services from Global Crossing to a new provider? Not much longer. With news today that Global Crossing is trying to shrink its US payroll with a voluntary redundancy package, it would be surprising if SWIFT was not in urgent discussions with alternative providers, since there is now a growing risk that SWIFT customers will no longer be comfortable with assurances from La Hulpe and will start to fret about loss of key staff and continuity of service.

Global Crossing announced today a program that offers incentives to employees based in the United States who voluntarily leave the company’s payroll as part of an overall expense reduction effort. Employees who volunteer to leave and are accepted into the program will receive a cash payment based on their salary grade and length of service, as well as a period of continued benefits.

The company said the total number of people who leave under the program would be determined by the needs of individual groups within the company and the effect of other expense reduction programs. Employees who are considered essential to the company’s operations will not be accepted into the program. The program is also closed to certain other employees, such as those who have already submitted resignations, who have already received separation notices or who are contract employees.

Employees will be able to apply for the program between February 22 and February 27, 2002. Those accepted will be informed on March 4 and March 5, 2002 and their last day of employment will be March 8.

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