AT&T to cut about 4,600 jobs, sees $374 million 1Q charge
The Associated Press
Friday, April 18, 2008
— AT&T Inc. on Friday said it plans to cut about 4,600
jobs, or 1.5 percent of its work force, to shift resources to
growing parts of its business. The nation's largest
telecommunications provider said most of the layoffs will be
among managers, particularly in wireline operations, including
local phone service and service for large corporate customers.
Jobs in corporate functions in like finance will also be cut.
"Even with the reductions announced today, we expect our head
count overall to remain stable this year as we hire additional
employees to support growth areas like wireless and TV," said
spokesman Michael Coe.
The San Antonio-based company said in a regulatory filing that
it plans to take a $374 million first-quarter pretax charge
against earnings due to the job cuts. The company reports
first-quarter earnings on Tuesday.
The company had 309,500 employees at the end of last year.
When it announced the acquisition of BellSouth Corp. in 2006, it
has said it would cut 10,000 jobs over three years from the
combined company to eliminate overlap. The cuts announced
Friday are not part of that reduction, and is the largest
announcement of job cuts by the company since then.
Despite the layoffs associated with the BellSouth acquisition,
the combined work force grew by 7,000 last year, as the company
built up its growing wireless and TV divisions even as land
lines shrank in the face of competition from wireless and cable
Its shares fell 6 cents to $37.51 Friday.