Winstar to Halt Network Expansion for Rest of Year, Cuts 2,000 Jobs

Winstar Communications (WCII Quote) is reducing its workforce by more than 40% by immediately cutting 2,000 jobs, and the company disclosed plans to halt its domestic and international network expansion for the rest of the year.

The company had about 4,500 employees before the cuts. Winstar didn't provide details about where the reductions would come from.

Earlier this week, the broadband services concern filed for an extension before submitting its annual report to the Securities and Exchange Commission, because the company has been holding talks about "certain material transactions" that haven't been completed. Winstar said Thursday that it would provide additional information about its business plan "once these matters are concluded."

Shares of Winstar, which is based in New York, recently gained 6 cents to 50 cents in Nasdaq trading.