AT&T to Take $1B 4Q Charge

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AT&T Corp. said it would take a $1 billion restructuring charge in the
fourth quarter as a result of massive job reductions, but the company added that
the layoffs would not affect its AT&T Broadband cable unit.

AT&T said the layoffs would affect about 10,000 employees, mainly in its
business-services, consumer and corporate divisions. About 5,100 of those
workers have already left their positions or received notice that their jobs
will be eliminated.

The company said in a prepared statement Friday that more than one-half of
the job reductions are management positions, adding that the rest of the layoffs
-- about 5,000 positions -- will occur in 2002.

Spokeswoman Eileen Connolly said AT&T Broadband would not be affected.
'This has nothing to do with Broadband,' she added

AT&T currently has about 120,000 employees.

AT&T Broadband agreed to a $72 billion merger with Comcast Corp. Dec. 19.
That deal is expected to close by the end of this year.

At the time of the merger announcement, AT&T Broadband had about 40,000
employees and Comcast had some 35,000.

In October, AT&T said it would take an unspecified fourth-quarter charge
as part of 'cost-control initiatives being undertaken largely within AT&T
Business.'

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