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Massive AT&T Reorganization, Possible Layoffs?
Nation's biggest ISP responds to markets, cable competition...
by Karl Bode 08:25AM Thursday Oct 02 2008
AT&T this week announced they're feeling the strain of the credit crunch, with Chairman and CEO Randall Stephenson saying the company was unable to sell any commercial paper (short term IOU notes) last week for terms longer than overnight. The company this week also announced that they've undergone a major reorganization in order to respond more quickly to cable competition. Managers tell GigaOM privately that they're expecting layoffs between 5% and 20% before long, thanks to declining landline sales, struggling markets, and the recent merger.

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Jekyllmd

join:2008-05-15

1 edit

Screwed Up

Im sure Randall will still take his million dollar bonus !!

isaax

join:2007-12-31
philippines

I work for AT&T

...and I sure hope I won't be included in the lay-offs hehehe!

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

And here I thought they were making obscene profits

Where have all the obscene profits gone? Maybe they were never there, like the uninformed always claimed they were. Looks like AT&T needs to start upping their fees and building some cash in the bank in this coming time of tight credit.

canesfan2001

join:2003-02-04
Hialeah, FL

Re: And here I thought they were making obscene profits

Yep, and as soon as they hike those fees, the laid off employees will have no problem getting a job with the cable company, because AT&T will be losing even MORE customers to them.
--
OASAASLLS
El Gaupo
Premium
join:2006-07-15
Buckhorn, NM

Re: And here I thought they were making obscene profits

Sorry but I aint gonna work for $13 a hour

canesfan2001

join:2003-02-04
Hialeah, FL

Re: And here I thought they were making obscene profits

said by El Gaupo:

Sorry but I aint gonna work for $13 a hour
Well then I hope you don't get laid off. Godspeed.
--
OASAASLLS
Expand your moderator at work

Ignite
Premium,VIP
join:2004-03-18
UK
Reviews:
·PlusNet

2 edits

Re: And here I thought they were making obscene profits

said by FFH5:

Where have all the obscene profits gone? Maybe they were never there, like the uninformed always claimed they were. Looks like AT&T needs to start upping their fees and building some cash in the bank in this coming time of tight credit.
Astroturfing, paying off policy makers, court cases and non-stop PR offensives are expensive you know.

Interesting I don't see Verizon wringing their hands over all this.

EDIT: Looks like AT&T do have cash in the bank, and apparently a strong cash flow, they have just been busily hoovering up wireless spectrum. I would have thought as a staunch capitalist you would have had some comments to make about a company living beyond their means and spending money they don't have.

quote:
AT&T has strong cash flow, which makes it less reliant on debt. But it's also paying for some big acquisitions of wireless spectrum this year. It had winning bids worth $6.6 billion in the latest auction by the Federal Communications Commission. By comparison, it had $1.6 billion in cash at the end of June.
Not like there was any lack of warning that the debt markets were drying up, AT&T just overspent and are now wringing their hands and crying 'woe are we'. A sadly all too common theme throughout corporations, banks and even government at the moment, be it overspending, overborrowing, or overlending.
nasadude

join:2001-10-05
Rockville, MD
said by FFH5:

Where have all the obscene profits gone? ...
I don't know - you tell me:

quote:
AT&T’s (News - Alert) second quarter profit jumped 30 percent, powered by the addition of 1.3 million new wireless customers. As expected, landline losses accelerated: Legacy phone lines shrank 8.1 percent to 58.9 million total lines from 64.8 million.
landline and broadband declining, so ATT laying off workers in that area. Apparently, they are still making "obscene" profits in the wireless area so the money is going somewhere (shareholders and execs?).

NetAdmin1
CCNA

join:2008-05-22
said by FFH5:

Where have all the obscene profits gone? Maybe they were never there, like the uninformed always claimed they were.
Sounds like someone hasn't read ATT's quarterly filings or earnings press releases...
--
---
Drilling for more oil is akin to giving a methhead the keys to the meth lab.

asdfdfdfdfdfdf

@Level3.net
They have been raising their fees.

I have nothing but a basic local voice line with them, no long distance, no add-ons like caller id, etc.

Jan 2007 this basic line was $18.70 / month. This fee or that fee has been going up ever since. My last bill was $26 for exactly the same service. There have been two different increases announced on each of my last two bills. There are few months where they aren't raising something.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

1 edit
said by FFH5:

Where have all the obscene profits gone? Maybe they were never there, like the uninformed always claimed they were. Looks like AT&T needs to start upping their fees and building some cash in the bank in this coming time of tight credit.
They spent a ton of money monopolizing (buying out the other Telcos, wireless spectrum, etc etc.)

Oh they're still making a ton of money, they just got tripped up by the current credit crunch.

The layoffs will help make sure the profits stay obscenely high.

--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

1 recommendation

Oops

And only a few days ago I changed my AT&T cell phone plan to save myself $35 a month. I guess this is my fault!
--
"At the moment of conception."

CaptBobo

@bellsouth.net

Randall Stephenson is a greedy pig

All this policing of AT&T's lines by big brother Randall and the RIAA/MPAA, caps on downloads,removal of binary newsgroups and general customer abuse it's a wonder AT&T has any customers left. If it weren't for Steve Ballmer of Microsoft, Randall would have the greedy piglet CEO title to himself. After releasing the horrible piece of controlware called Fista...Oops I mean Vista, M$ market share is slipping big time to Apple's OSX. Apple controlled 21% of the US market on April 1st of this year

»apple20.blogs.fortune.cnn.com/20···percent/

I wonder when M$ and AT&T's board of directors will have the balls to replace these soft sacks? Maybe if they do, companies like these will understand the CUSTOMER is the one who pays their bills and should almost be worshiped.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Randall Stephenson is a greedy pig

I think M$ owns shares of Apple too.
You have to think a little more 'open', like Linux to get off the big corps image.
--
Canada = Hollywood North
itguy05

join:2005-06-17
Carlisle, PA

Re: Randall Stephenson is a greedy pig

quote:
I think M$ owns shares of Apple too.
Sold them off long ago.

dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
kudos:18

1 recommendation

Uverse?

From what I keep reading, Uverse is the shit!
Maybe I took that the wrong way...
Perhaps I read it wrong - Uverse is ... shit.

Or, is it that SBC is trashing AT&T like it was trashing itself before the buyout.


--
Think outside the Fox... Opera
Madtown
Premium
join:2008-04-26
Madera, CA

Re: Uverse?

Maybe U-verse will be out faster to other areas, who knows?

dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
kudos:18

Re: Uverse?

said by Madtown:

Maybe U-verse will be out faster to other areas, who knows?
Here, no thanks! AT&T/SBC can keep it.
--
Think outside the Fox... Opera

Uncle Paul

join:2003-02-04
USA
kudos:1

1 recommendation

Re: Uverse?

Any compitition is better than no compitition. Now put U-Verse, FIOS, and Comcast in the same market... now we're talkin!

dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
kudos:18

1 edit

1 recommendation

Re: Uverse?

Remember, all ISPs are either great or suck ass depending on area.
*HERE* what was SBC(now AT&T) sucked ass.
I'm willing to wager - they still suck ass.
Currently, for broadband, my Comcast will blow AT&T Uverse out of the water - whenever they decide to deploy here.

They can keep it!
--
Think outside the Fox... Opera

ninjatutle
Premium

join:2006-01-02
San Ramon, CA
Just imagine if they've been running fibre to every casa and flat like the geeks on this board wants. They'd run themselves in the ground and we'd all be on Comcast. Naturally, with Comcast going unchecked with no competition, we would see digital cable and broadband double the price it is now.

fatmanskinny
Premium
join:2004-01-04
Wandering
Reviews:
·Vonage
·Comcast Digital ..

Subliminal message: Verizon, buy AT&T! Verizon, buy AT&T....

I don't want you guys to accuse me of subliminal messages. I am straight forwarding in saying that I (Verizon, buy AT&T! Verizon, buy AT&T!) believe that AT&T is going to survive with (Verizon, buy AT&T and start Operation: FIOSed America!) U-Verse as it is the best (Operation: FIOSed America!) technology going.

Go AT&T! (I am Fatmanskinny and I approve a FIOSed America!).
--
God saved me from myself! Thank you, Lord, in the Name of Jesus!

richdelb
Go Hawks Go
Premium
join:2003-01-22
Algonquin, IL

1 edit

Land Lines are DEAD

Upon reflection I do not wish to post. Please take me back
jtel

join:2005-06-28
Bristol, RI

AT&T Affected by Lack of Short Term Credit Availability

AT&T made a statement earlier this week stating they are having trouble selling their short term debt. The same situation that gave Warren Buffet an in with GE.

This is where Main St meets Wall St and layoffs result.

Old_Grouch
Don't just sit there silly DO something
Premium
join:2004-05-26
Greenwood, IN
kudos:1

Smoke Screen

Maybe all this financial blather is the smoke screen that at&t has wanted for quite a while.

They don't hide their efforts to grow the wireless and u-verse environments more and more of which comes at the cost of traditional wireline service.

As the population of u-verse grows and they meld their own VOIP offering, the landline universe fades to quiet obscurity.

And, seems like closing in on every contract negotiation the death star finds reason to have to tinker with headcount projections as though the union(s) will fear loss of members and soften their demands.

It may be the perfect storm for them....contract time and Chicken Little running around crying about the financial sky falling.
--
At Team Discovery we know how to get more outta that danged 'puter of yours!

Duramax08
To The Moon
Premium
join:2008-08-03
San Antonio, TX

Thats what AT&T gets......

There DSL availabilty sucks. Pretty much you got to live right next door to a CO or those gateway things. If you don't live near those, You are out of luck like me. If AT&T came over here, They will get my business. But if cable came, Ill probably switch since DSL gots a low upload speed. It seems AT&T is going to go downhill from here on out. They better have some good technology up their sleeves.
--
»live.xbox.com/member/Duramax08

attsux

@rcn.com

byebye

its about time to let the dead weight go. doesnt help at&t has a crap product they call uverse to try to pass off like a fios product.

skeletor

@rr.com

good

its about time. i had a friend that worked for at&t before it was aquired by sbc. she went thru several reorgs, had no real boss or responsibilities and came in whenever she felt like it (which was never). basically on the payroll and not doing a thing! she freaked when the whole company was told last year no more telecommuting and to show up and work.

Dixie

@insightbb.com

Used to work for ATT

They treat their customers and employees horribly so I am not surprised at anything that happens to that company. I loved working for Cingular before this horrible companpy took over.

SrsBsns

join:2001-08-30
Oklahoma City, OK

Re: Used to work for ATT

said by Dixie :

They treat their customers and employees horribly so I am not surprised at anything that happens to that company. I loved working for Cingular before this horrible companpy took over.
I think you got it all wrong. Cingular Purchased AT&T Wireless and SBC which was a parent company of Cingular purchased AT&T. They then changed the name to at&t.

Dixie

@insightbb.com

Re: Used to work for ATT

That is what you were led to believe, funny it is still ATT with all of their crappy programs and upper management. Believe me I worked there for 12 years and went through 5 different mergers, I have seen it all. No matter what the perception of the public was about how all of this came together, it was done by ATT.
iampedro

join:2005-02-12
Houston, TX

Takes on Comcast & AT&T Uverse

All I know is I hope that there UVerse department increases several things to be competitive in the future.
Takes AT&T / Uverse
1. Bandwith need 100meg's available within 1 - 2 years for Uverse users.
2. Better / faster deployment to all homes. I live in AT&T world and my street and zip code still doesn't have Uverse.

Takes on Comcast.

1. Great bandwidth
2. Extremely poor DVR's and functionality. (Wake up and smell the 4 year old equipment Comcast).
3. Bandwidth throttling
4. When they increase your bandwidth they tell you well we will increase your price also.

Just Visiting

@comcast.net

The "Dead Weight"

..I was thinking.....

That the dead weight was the management,......

and not the people that actually do the work,

I mean, what if the management at the car companies had actually mandated a more fuel efficient car in the 70's the first time the oil stopped? (Is that something the workers could have done?) - Likewise, the LEC's offshoring the managements work that they think needs to be done, - just wait and see (there will be lay-offs, just before the LEC's fold)

NO_IOUs

@extendedstay.com

Good for AT&T

They deserve what they have coming to them. This is what happens when you overcharge customers for years, tell your employees they are being outsourced to India, and also lie to investors telling them they are going to bring jobs back to the US.

I can tell you this the fat cat executives will still get their bonuses and all other incentives. As a whole I am glad this is happening to them. If they were true to their word when they merged they would not be in this position. KARMA!

I do however, feel badly for the lower end employees as they are pawns in this whole thing.

See what happens when you undermine the American people by lying cheating and lining your pockets? I hope the executives lose their houses, cars and boats. Once again, KARMA.