AT&T will eliminate 40,000 jobs and take a charge of $4 billion; preparing for spinoffs, giant firm to slash 24,000 manager posts
Article Abstract:
AT and T announced that it will eliminate 40,000 jobs by 1999, preparing for its split into three independent companies. The massive job elimination is one of the largest cuts in US corporate history. AT and T will take a $4 billion charge as a result of the cuts, which will result in a loss for the 1995 4th fiscal qtr. The company's full 1995 earnings will also be reduced by $4 billion, or $2.50 per share. Wall Street analysts applauded the move by sending AT and T's stock price up $2.625, to $67.375 on Jan 2, 1996. Analysts were surprised by the scope of the layoffs. Of 40,000 positions, 28,000, or 70%, will be eliminated within 1996. About 24,000 of the jobs will be from management positions. AT and T has eliminated almost 125,500 jobs since 1986. The steady jobs cuts have adversely affected employee morale.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Ex-MFS managers plan global network based on Internet, rivaling phone firms
Article Abstract:
Former managers of MFS Communications Co, acquired in 1996 by WorldCom Inc, announce plans for the first worldwide system of Internet-based local and long-distance networks. The managers are armed with $3 billion, and their new company will be called Level 3 Communications Inc. Their plan is to use Internet Protocol (IP) data-transmission networks instead of traditional telephone nets. IP challenges traditional phone technology by speeding transmissions and lowering operating costs. Fiber-optic systems, which are proliferating, could cause problems for Level 3 because so much transmission capacity is being put in place. So far, however, demand continues to increase rapidly and remains far ahead of supply.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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