AT&T's Armstrong now has harder job

Article Abstract:

AT&T Chmn C. Michael Armstrong's efforts to reshape the telecommunications leader have not produced immediate results. Key 1998 plans call for placing more than $20 billion in AT&T's long-distance, local and wireless networks, plus a management overhaul. An Armstrong expansion plan entails investments and acquisitions to restore high-end phone use and emerge as the dominant Internet force. The 1st qtr 1998 results showed flat revenue, a fall in consumer revenue for the second consecutive quarter and mere single-digit growth in wireless business. Other problems include a recent drop in stock price and a nearly $18 million loss in market capitalization since early 1998. AT&T probably must reverse its slide by 1999 or lose its lead to competitors such as SBC Communications. Armstrong, who most overcome a nostalgic company culture and previous management spending errors, has the managerial experience and acumen to meet the challenge.

Armstrong, C. Michael, Company Business Management

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AT&T plans to slash work force; breakup will involve financial revamping, over 20,000 job cuts

Article Abstract:

AT and T plans to massively cut its workforce in preparation for its breakup into three independent companies by late 1996, but the logistics facing the company's management team are tremendous. AT and T recently announced that it would breakup into phone and cellular, telecommunications equipment manufacturing and computer manufacturing units, each completely independent from the other. The breakup will necessitate the elimination of about 20,000 jobs. The phone service unit, which will keep the AT and T name, provides two-thirds of the company's revenue, but employs only one-third of the personnel. The equipment manufacturing and computer units employ two-thirds of the personnel, but generate only one-third of the revenue. Also, AT and T has far too many employees for non-profit generating units such as internal phone systems and real estate.

Human resource management, Company restructuring/company reorganization, Reorganization and restructuring, Company personnel management, Company Operations

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