Grant Gross
Senior Writer

Update: AT&T to lay off more than 4,000 employees

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Apr 18, 20082 mins

Telecom giant will primarily target management in layoffs aimed at streamlining its operations

Telecom giant AT&T plans to lay off 1.5 percent of its employees, primarily in management, in an effort to streamline its operations, the company announced Friday.

AT&T had about 310,000 employees at the end of 2007, meaning the layoffs would affect about 4,650 workers. The layoffs are the “next step” in streamlining company operations in an effort to operate more efficiently after recent mergers between parent company SBC, the old AT&T and BellSouth, the company said in a filing with the U.S. Securities and Exchange Commission.

AT&T expects its total number of employees to remain stable in 2008 “as the company hires additional employees to support growth areas,” AT&T said in the filing. In 2007, the company added about 7,000 employees, said Walt Sharp, an AT&T spokesman.

“We do have a lot of growth in other areas,” Sharp said.

The company began notifying the affected employees on Friday, and AT&T gave the employees a 60-day notice, Sharp said. “The bottom line is that we remain one of America’s largest employers,” AT&T said in a statement. “And we are putting jobs where our customers are.”

The streamlining effort is focused on jobs that don’t interact with customers, the company said.

“This initiative is part of the company’s move from a collection of regional companies to one AT&T focused on customers,” AT&T said in the filing.

The layoffs mean AT&T will take a one-time charge of $374 million during the first quarter of 2008. AT&T is scheduled to announce its first-quarter earnings Tuesday.

AT&T reported a net income of $3.1 billion for the fourth quarter of 2007. It’s revenue for the quarter was $30.3 billion.

This story was updated on April 18, 2008

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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