AT&T chief halts hiring, shifts budget

Article Abstract:

New AT&T Chmn C. Michael Armstrong's plans call for a hiring freeze, cost reduction and effort to raise the company's stock quickly, according to company executives. AT&T's $4 billion sale of its Universal Card subsidiary to Citicorp has enabled Armstrong to redirect more than $2 billion in local-phone services spending. Armstrong aims to invest much of the planned savings into new networks and services, while higher stock values could enable AT&T to make significant contributions. The hiring freeze could signal additional job cuts for AT&T's current 133,000-person workforce. Job reductions could exceed the 17,000 total planned in 1995 and only partially taken, according to insiders. Armstrong also is targeting AT&T expenses that currently exceed $45 billion annually. Reductions could take place in the approximately $17 billion per-unit costs of AT&T-paid fees by finding alternatives to regional Bell companies that carry its traffic locally.

Telecommunications, Telephone Communication, Management, Planning, Telecommunications services industry, Telecommunications industry, AT&T Corp., T, Economic policy, Company business planning, Company executive, Computer executives, Armstrong, C. Michael

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Sprint plans to integrate voice, data

Article Abstract:

Sprint Corp. is planning to transfer to a single communications network that will offer intergrated voice and data services. The company announced that it would transfer to a streamlined delivery system called the Intergrated On-demand Network (ION). The network will provide customers with a single connection that will increase the speed of telephone calls and Internet browsing.

United States, Strategy & planning, Wired Telecommunications Carriers, Company Planning/Goals, Telephone Communications, Telephone services, Sprint Corp., Article

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