AT&T faces slow going in its effort to slash jobs; hires in growing businesses nearly outpace cutbacks that total 7,000 so far
Article Abstract:
AT&T is behind in its expressed goal of laying off 40,000 employees in an effort to reduce company expenses and compete profitably with the emerging RBOCs for the local and long-distance telephone markets. AT&T has actually hired 4,400 new employees since Jan 1996, releasing only 7,000 people in that same time. Analysts suggest that AT&T must make the personnel reductions in order to stay competitive. The company's equipment units, Lucent Technologies and NCR, have absorbed the largest percentage of AT&T job cuts, but company officials claim that AT&T is on schedule to make the majority of cuts before 1997. AT&T has come under critical scrutiny from the public and press since the company announced its intention to reduce its workforce so dramatically, and corporate morale is reported to be at an all-time low.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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AT&T's Armstrong is expected to cut as much as 15% of staff: reduction could be deepest in a decade; big meeting Monday
Article Abstract:
AT&T Chmn C. Michael Armstrong plans to lower the company's work force by up to 15% and reassign much of its senior management team, according to company insiders. Such a reduction would cut as many as 19,000 jobs, representing the largest to strike AT&T since the late 1980s. The telecommunications giant has struggled with downsizing efforts to maintain its relevance in a shifting communications era. Former Chmn Robert E. Allen, who broke up AT&T in 1996, did not follow through on his plans to cut 17,000 jobs from the new AT&T. Armstrong apparently is preparing to make aggressive moves to reach his stated goal of making AT&T the low-cost telecommunication provider. Armstrong also expects this plan to bring expenses as a percentage of revenue, which echoes the strategy of Worldcom and other competitors.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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