PCCW rules large-scale job cut out

David Prince, Chief Finance Officer of PCCW (0008), revealed that PCCW had ruled large-scale job cuts out for saving operating cost, as laying off might lead to poor service quality. The debts of PCCW, including the syndicated loans and convertible bonds, amount to US$6.6 billion (approximately $51.5 billion); after deducting its cash on hand, the net debt is US$5.1 billion (approximately $39.8 billion). The brokerage firm estimates that PCCW's debt bears an annual interest rate of 5.6% this year. It also said that PCCW has been benefiting from the interest rate cut cycle and PCCW can save up to $200 million if Libor falls by every 0.5%.

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