AT&T Corp. said it would take a $1 billion restructuring charge in the fourth quarter as a result of massive job reductions. The layoffs will not impact 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 have received notice that their jobs will be eliminated. AT&T said in a prepared statement Jan. 4 that more than half of the job reductions are management positions, adding that the rest of the layoffs — about 5,000 positions — will be eliminated during 2002.
AT&T spokeswoman Eileen Connolly said AT&T Broadband would not be affected. "This has nothing to do with Broadband," she said.
AT&T currently has about 120,000 employees.
AT&T Broadband agreed to a $72 billion merger with Comcast Corp. on 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 workers.
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."