Sprint Dismisses 6,000
Sprint called it quits on its ION high-speed Internet project which it began in 1998. In ending the project Sprint laid off 6,000 employees, 3,000 in Kansas City, and 1,500 contracted workers. The job cuts mark one of the largest single lay-offs in Kansas City’s recent history. Sprint makes up almost two percent of the metropolitan area’s work force.

“We are taking significant steps to reduce our cost structure and sharpen our focus on the products and services that hold the best potential for growth and return on investment,” says William Esrey, chairman and CEO.

The cost of this decision totals $2 billion which will be charged to fourth quarter 2001 earnings. Total cash exit costs of terminating ION are $600 million with $200 million in severance packages.

Sprint Corp. has announced record third-quarter consolidated revenues of $6.72 billion, an increase of 11 percent from last year. Sprint PCS has reported continued customer growth.

Utilicorp to Power U.K.
UtiliCorp United has offered to purchase Britain’s Avon Energy Partners Holdings, the holding company for Midlands Electricity plc. UtiliCorp, along with an unnamed partner, will purchase the company for $2.1 billion.

Midlands Electricity serves 2.3 million customers and is the fourth-largest regional electricity company in the United Kingdom.

The purchase price includes the assumption of 1.7 billion in debt and $362 million in equity that will be provided equally between UtiliCorp and its partner. Midland’s year-end electricity sales reached approximately $570 million.

Life Sciences Institute Stands on its Own Two Feet
The Kansas City Area Life Science Institute has become fully independent from its sponsoring organizations, the Civic Council of Greater Kansas City and the Kansas City Area Development Council. The board of directors will be chaired by James L. Spigarelli, president/CEO of the Midwest Research Institute.

K.C Law Firms Talk Merger
Morrison & Hecker and Stinson, Mag & Fizzell are continuing on with merger plans. Partners and shareholders of the two firms have given approval to the basic framework of the merger, though no final vote has yet been tallied.

The two firms’ combination would create the second largest law firm in the Kansas City area. Morrison & Hecker has 111 lawyers locally and currently ranks fourth on Ingram’s 2001 list of Top Area Law Firms. Stinson, Mag & Fizzell is seventh in the area with 108 lawyers.

The two would surpass Lathrop & Gage and Blackwell Sanders Peper Martin. Shook, Hardy & Bacon would remain the largest firm in Kansas City. The move would give the attorneys nine offices across the country.

Farmers Brings in 550 Jobs
Farmers Insurance Group recently opened the HelpPoint Center in Olathe which will provide 550 jobs and $18 million in annual salary.

The new facility fills 90,000 square feet at 119th and I-35. “Olathe was the perfect location to open this state-of-the-art facility. The Farmers HelpPoint center is going to transform the way Farmers does business and we are proud to have Olathe be a part of that,” says Joe Moss, state executive director.

The facility will handle auto and home claims from all over the nation, 24 hours a day.

Children’s Mercy Expansion Off to a Good Start
Children’s Mercy Hospital has received approval from the state for $20.5 million of a $129 million expansion. The expansion will span 10 years and campuses both on Hospital Hill (Kansas City) and Overland Park.

The Missouri Health Facilities Review Committee granted the approval which will start the first phase of the expansion, four new operating rooms.

The first phase is planned to take 18 to 24 months with the entire project completed in 2011.

Bloch Cancer Center Closes
Richard Bloch has ended his $100,000 annual funding of the Bloch Cancer Support Center at UMKC. The center requiring $150,000 to $200,000 to operate is too expensive for the university, which plans to end the program at the end of this year.

Bloch ended the funding after the center dropped weekly support-group programs. The university plans to reopen the center with a new focus, affiliating it with its schools of nursing or medicine.

Ferrellgas Warms to Record Earnings
Ferrellgas Partners made a record $64.1 million in its 2001 fiscal year. The earnings are attributed to the colder-than-normal winter temperatures last year as well as to the contribution of Thermogas, which was acquired Dec. 1999.

Retail sales of 957 million gallons increased 13 percent from 847 million last year. The company has delivered a return of 40 percent since January even though the market declined significantly. Ferrellgas serves more than one million customers in 45 states.

Vanguard Tightens its Belt
Vanguard Airlines has received $4.5 million as the first installment of federal aid under the Air Transportation Safety and System Stabilization Act.

Though it held off longer than some of its competitors, the company has laid off 120 workers. The airline also cutback on 20 percent of its flights since demand for air travel has fallen after Sept. 11.

Bass Pro Swims IntoTown
A Bass Pro Shops Outdoor World super center will be a key addition to the new Bannister Mall, renamed Three Trails Center. The revamping of the mall will cost $76 million. The freestanding Bass Pro Shop will inhabit 160,000 square feet of retail space as early as next fall. The shop is the third in Missouri and 16th in the country. It is expected to bring 250 jobs to the local economy.