NEW YORK -- Global Crossing Ltd. reported a sharply wider third-quarter net loss and announced a new cost-cutting plan, as its chief executive said the company's financial woes have "shocked and angered" investors.

The Hamilton, Bermuda, telecommunications concern reported a loss of $3.35 billion, or $3.84 a share, compared with a loss of $544 million, or 69 cents a share, in the year-earlier period. The latest loss includes a $2 billion write-down for the value of its stake in Exodus Communications, which has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Revenue inched up 2% to $793 million from $778 million.

At 4 p.m. Wednesday in New York Stock Exchange composite trading, Global Crossing was up 13 cents, or 12%, at $1.20, just above the 52-week low of 38 cents set Oct. 9, but well below the 52-week high of $25.88 of January.

To cut costs, the company said it would lay off 1,200 of its 9,200 workers world-wide and will drastically pare its annual capital and operating expenses to $1 billion to $1.25 billion, from as much as $5.1 billion when it was building its now-completed world-wide fiber-optic network. Company officials said the job cuts, along with some asset sales, will save about $550 million in annual expenses.

Chief Executive John Legere said the company would renew its focus on selling to large corporations instead of relying on sales to telecommunications carriers, whose orders continue to weaken. The company sells access to its extensive fiber-optic connections. Sales to large corporations rose 35%, it said.

While the company's performance was in line with the estimates it shared with analysts last month, Wall Street's attention now is turning to how the company will support its $7.7 billion of debt in the face of a gloomy market for telecommunications services. Company officials said they soon will fall out of compliance with covenants for its bank's financing, which would force it to renegotiate the credit facility. Mr. Legere said he was confident of receiving approval from its bankers, but analysts remained concerned about any new terms.

"They're cutting staff, the sales force, all the right things to preserve liquidity," said Daniel Zito, a telecommunications analyst at New York securities firm Lehman Bros. "But ultimately, they're going to have to service or pay back the debt" taken on when the company had planned to be a larger operation.

Global Crossing's debt woes were highlighted in a recent downgrade of its credit rating by Standard & Poor's, which cut the company's corporate credit rating to single-B-plus from double-B. As the credit-rating concern noted in its announcement, Global Crossing will be funded through 2002, however, funding beyond next year depends on the sale of noncore assets, the timing and proceeds of which are "uncertain." The company says it had $2.4 billion in cash at Sept. 30 and already is in negotiations to sell its IPC Trading Systems and Global Marine businesses.

Early this month, the company called off a proposed merger with Asia Global Crossing, in which it owns 59%. Though the merger fell through, Global Crossing said it would stick to its plan to retain Mr. Legere as chief executive of both companies.

Mr. Legere's uncomfortable position was highlighted Tuesday by Elliott Associates LP, which holds Asia Global Crossing bonds. The $2 billion hedge fund said the board of Asia Global Crossing has breached its duties by failing to use a $400 million subordinated loan facility made available to it by Global Crossing. Mr. Legere said Asia Global Crossing was free to use the loan, but he questioned whether the company needed such "expensive" cash, which carries a 15% interest rate.

Write to Dennis K. Berman at dennis.berman@wsj.com¹

Updated November 15, 2001