AT&T to Cut 3,500 Jobs, Record $240 Mln in Expenses
More good paying jobs evaporated.
New York, Jan. 6 (Bloomberg) -- AT&T Corp., which has slashed more than 10,000 jobs in the past two years, plans to eliminate 3,500 more to compensate for falling demand at the biggest U.S. long-distance telephone company.
The latest cuts will result in fourth-quarter pretax expenses of about $240 million, or 20 cents a share, AT&T said in a statement. The New York-based company also expects asset- impairment costs of $200 million for its high-speed Internet network and $1.1 billion related to an investment in AT&T Latin America Corp., which may file for bankruptcy protection.
More than half of the new positions slated for elimination will come from AT&T's management ranks, the company said. Most of the workers will leave the payroll in the first half. The cuts are the result of automation and improved processes for services to business customers, AT&T said.
Shares of AT&T, which plans to report fourth-quarter results this month, climbed 66 cents to $27.66 Friday on the New York Stock Exchange.
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Jim, we have talked about RD in the past, and you know I always trade it long off of $40 when it gets cut down that far, Barron's did a piece on RD calling it undervalued compared to other big oils, and with the coming announcment
in dividend cuts it should get a little pop.
GAB paying out 15% currently, speaking of dividends. |
