77,800 managers at AT&T getting job buyout offers

Article Abstract:

AT&T offers 77,800 managers buyout packages in a move that observers claim indicates that corporations are once again cutting out middle management. The AT&T offer asks for a decision by Dec 29, 1995, and those accepting will leave the company by Jan 13, 1996. The company expects less than 10% to accept, since only 10% accepted more generous buyouts in the company's 1989 layoffs. The current offer includes five to 35 weeks of salary, depending on length of employment, age and salary, plus 20% of that total and eight more weeks of salary. The company plans involuntary layoffs if not enough employees leave voluntarily. Analysts believe AT&T wants to make the company lean before it makes initial stock offerings for the two new companies that will be created after its split up. Observers also contend that AT&T and others use buyouts and layoffs to give them a chance to hire new talents, although AT&T denies that it seeks to reduce staff more than necessary.

Human resource management, Reorganization and restructuring, Layoffs, Layoff, Company Business Management, Company Restructuring/Company Reorganization

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AT&T's romancing of John R. Walter

Article Abstract:

The search that led to the hiring of former Donnelley Chmn John R. Walter as the president and chief operating officer of AT&T was a long and complex process. AT&T took the unusual tactic of hiring two executive search firms to identify candidates, a step that let the company avoid the standard that prohibits recruiters from poaching executives from their other clients. Because two firms were searching for a candidate, all executives became potential candidates. Both recruiting firms compiled a list of candidates who met the AT&T requirements, which included familiarity with a service business and with technology, along with leadership and marketing skills. The original list of 30 candidates was reduced to 17, and finally to six. While AT&T officials expressed enthusiasm for the Walter, the stock market remained unimpressed, and the company's stock fell $1.875 to close at $37.875 on Oct 23, 1996.

Officials and employees, Employee selection, Hiring

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AT&T choice under fire: did search go wrong?

Article Abstract:

AT&T's choice of a new president, John A. Walter, was met with an 8.5% drop in stock prices as well as analysts' dismay. Professionals from the executive recruitment industry disapproved of the way the search was conducted. The board of directors allowed CEO Robert E. Allen to oversee the search, and did not receive direct reports from the recruiters. The search was complicated by the fact that the position of president is second to that of CEO and thus not attractive to the top tier of candidates. AT&T, the nation's 11th largest corporation, and the giant in the telecommunications industry, has gone through numerous restructuring efforts, seemingly to little avail. AT&T's stock prices are close to their 52 week low.

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