AT&T Chief Promises Job Cuts
Addressing the Goldman Sachs & Co. telecom conference in New York, Dorman said AT&T will continue to cut costs by eliminating headcount through improvements in back-office efficiency. He said the carrier will spend $700 million to drive costs out of its operations.
AT&T plans to reduce its headcount to 65,000 by the end of the year, roughly a 9 percent decrease from 2002 figures. The job eliminations will result in an annualized cost savings of $500 million.
Dorman would not be drawn on Wall Street rumors that AT&T is in talks to merge with BellSouth Corp. (NYSE: BLS). "I think I've heard that one before," he gaily quipped, moving swiftly on.
Read more of his stunning bon mots on Boardwatch.
— Jo Maitland, Senior Editor, Boardwatch