Washington,. June 26 (Reuters): Long-distance telephone company MCI Inc. said on Friday it was cutting about 2,000 jobs, or roughly 4 per cent of its work force, as it struggles to lower costs in the midst of a price war with AT&T Corp and dominant local telephone companies.

The move brings the total number of job cuts announced by MCI this year to 15,200, or about 28 per cent of its employees.

Most of the new round of cuts will come from closing customer telemarketing centres in Colorado and Kansas, with additional cuts at centres in South Carolina and Iowa.

MCI’s move followed AT&T Corp.’s announcement on Wednesday it was cutting its earnings and sales outlook for the year, citing pricing pressures and its decision to stop adding residential customers in seven states.

The two, along with Sprint Corp., have been fighting a price war in the long-distance market with the dominant local phone companies, who have lured millions of residential customers and have set their sights on profitable business clients.