AT&T is offering buyout packages to about half of its supervisory force

Article Abstract:

AT&T has announced a massive buyout plan targetted at an estimated 78,000 of its managers in preparation for its 1997 breakup into three separate companies. AT&T plans to spin its telecommunications equipment business into a separate, publicly owned company by Jan 1997. The resulting public offering could bring in about $4 billion when AT&T offers 15% of the unit in 2nd qtr 1996, which could represent the largest public offering ever. The company's struggling computer unit, AT&T Global Information Solutions, will be spun off as soon as it becomes profitable. The buyout package is designed to begin the process of trimming the company's massive management force. Managers who are given the offer have until Dec 29, 1995, to give their answer. The buyout package could harm AT&T because it has no control over who choses to stay or leave, which means that high quality employees could leave in unwanted numbers.

Human resource management, Company personnel management, Layoffs, Layoff

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AT&T revamping to trim 18,000 jobs: Internet, wireless services set to meet competitors; big charge is expected

Article Abstract:

AT&T Chmn C. Michael Armstrong introduced a sweeping reorganization strategy to strengthen the telecommunications giant. Plans call for eliminating up to 18,000 jobs, absorbing as much as $1.2 billion in a pretax charges against 1st half 1998 earnings and investing aggressively. Armstrong told analysts that AT&T, which is seeking to expand in local Internet and wireless services while fending off potential long-distance telephone service rivals, would boost its competitiveness. AT&T will surpass analysts' earnings estimates for 1998 by at least 10% and report annual revenue growth ranging between 2% and 4%, according to Armstrong. The company plans to lower its current 128,000 employees to no more than 105,000 by 1999. AT&T also will slice up to 25% of its 136 senior officer positions, as well as freeze the salaries of 450 senior managers.

Company restructuring/company reorganization, Reorganization and restructuring, Company executive, Computer executives, Armstrong, C. Michael

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