AT&T jacked up everybody’s stress level and even surprised Wall Street when it rang in the New Year with news that it would eliminate 40,000 jobs by 1998.
One local employee voiced the sentiments of almost anybody who works for somebody else when he said, “It’s just a case of wondering when it will catch up with you.”
In November, AT&T offered buyouts to more than 70,000 workers, but only 6,500 accepted. Of the 40,000 jobs to be wiped out, about 75 percent will be cut through layoffs.
The cutback will be the third-largest in corporate America in three years. In 1993, IBM did away with 63,000 jobs, and Sears, Roebuck and Co. announced the demise of 50,000 jobs as well as its catalog, known as the Big Book.
AT&T said the job cuts were triggered by the need to be competitive while leading the way for its splintering into three companies in coming months.
To pay for the cutbacks, AT&T will take a $4 billion fourth-quarter charge. Dismissed employees will get from 5 to 35 weeks of salary, based on age and seniority. The company did not disclose whether it was including a telephone as part of each termination package.
