Ameritech to cut 5,000 jobs in effort to save $3 billion: $64 million charge is taken for quarter
Article Abstract:
Ameritech announced that it would cut 5,000 jobs, or almost 7% of its work force, in 1998, as part of its Mar 1998 plan to reduce $3 billion in costs through 2002. The Chicago-based Ameritech also said it had absorbed a $64 million charge against its 1st qtr earnings of $492 million, or 44 cents a diluted share, announced on Apr 14, 1998. Layoffs would apply to Ameritech's cellular and home-security divisions, according to a company spokesman. Ameritech offers cellular-phone service to 3.2 million customers in seven states, mostly in the Midwest, but its 1st qtr 1998 growth slipped by nearly 15% compared to the 1st qtr 1997. A series of home-security business acquisitions requires a reduction in operating expenses and more efficient service, according to Anthony F. Ferrugia, an analyst at A.G. Edwards in St. Louis. Ameritech has reported earnings growth of more than 10%, excluding one-time charges, for 18 consecutive months.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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AT&T may cut far fewer jobs than 40,000
Article Abstract:
AT&T reports its original plans to cut 40,000 employees from its workforce have changed because more employees than expected are taking advantage of the company's buyout offer and are finding new job opportunities within the company. Originally, AT&T planned to fire 30,000 workers and offer buyouts to 10,000 others. However, AT&T estimates that 12,000 workers will take buyouts and only 18,000 may end up being fired. The company's entry into the Internet access, wireless and local telephone service markets are providing jobs for employees displaced from other company departments. However, AT&T reminds employees and analysts that its layoff estimations may require further adjustments. The layoffs are part of the company's restructuring plan that will split the organization into three separate entities.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Internet stock rockets 474% in initial offer
Article Abstract:
The day of its initial public offering the price of Marketwatch.com stocks climbed from an opening price of $17 a share all the way up to $130 a share at the close of the day, the second largest gain ever seen in an IPO. Investors are snapping up shares of this Internet financial news service company because it was created by and once owned by CBS Corporation and Data Broadcasting Corporation and both companies still have a substantial investment in Marketwatch.com. This is part of a recent trend for Internet-based companies to command high stock prices in spite of the fact that they have not yet made any money. Investors are hopeful that they will see a quick turnaround on their investment because of Marketwatch.com's connection with established media companies.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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