WorldCom European chief Lucy Woods is said to have informed senior staff of the calamitous figures in a conference call.
She is also thought to have warned that the drop was far worse than the usual summer dip, that the firm was struggling to win new contracts and that parts of its European operations may be sold.
But she added that wholesale sales were up and that most of the carrier’s customers were ‘calm’ and ready to stay loyal for now, according to UK business newspaper The Financial Times.
Speculation has grown that parts of WorldCom’s European business may be sold off in an effort to stem losses as it looks to trade out of trouble.
BT and several investment groups are thought to be potential buyers.
Worldcom has yet to comment on the newspaper report and has previously denied that it is looking to sell its European operations.