Business & Finance
Boeing is expected to announced 1,000 job cuts at its El Segundo, Calif., satellite manufacturing operations, the Los Angeles Times reported, due to a slump in the telecommunications industry. A later round of layoffs could involve a similar number of jobs, the paper said. Chicago-based Boeing is the world's leading aerospace and commercial jet company. A slowdown in that industry in the wake of the Sept. 11 terrorist attacks already has prompted it to cut 30,000 jobs.
Another 800 to 900 jobs will be cut by year's end at Verio Inc., the Englewood, Colo.-based Internet service provider owned by NTT Communications Corp. of Japan, the latter announced. NTT, which is restructuring amid the global communications slump, also said it would close all but 10 of Verio's 46 data centers. NTT previously said it was cutting 650 jobs at Verio.
After a failed two-year effort to restructure its operations, textilemaker Guilford Mills Inc. is hoping to work out a prepackaged bankruptcy deal with creditors, reports said. In a filing with the Securities and Exchange Commission, the company said it was offering lenders an ownership stake in exchange for refinancing its debts. A $275 million debt payment had been due today. Guilford Mills produces fabrics used for auto upholstery and womenswear. It already has sold off a division that made curtains and bed linens. The company is based in Greensboro, N.C.
In a deal valued at $2.5 billion, the natural resources group Xstrata PLC said it would buy its No. 1 shareholder's coal mines in South Africa and Australia. The seller, Glencore International, is a leading commodities trader. Both companies are based in Zug, Switzerland.