The largest telecommunications company in the United States announced today that it will cut 4,600 jobs to facilitate a shift to growing sectors of its business. Most of the layoffs will be among managers in the wireline operation, which includes local phone service and service for large corporate customers. Jobs in finance will also be cut.
”Even with the reductions announced today, we expect our head count overall to remain stable this year as we hire additional employees to support growth areas like wireless and TV,” said spokesman Michael Coe.
AT&T plans to take a $374 million first-quarter pretax charge against earnings due to the job cuts. The company will report first-quarter earnings next Tuesday.
When AT&T announced it would acquire BellSouth Corp. it said it would cut 10,000 jobs over three years. The latest job cuts are not part of the overlapping 10,000 jobs. Despite layoffs associated with the Bellsouth acquisition, AT&T has increased its workforce by 7,000. Many of the new jobs were filled by the growing wireless and TV divisions.