Look for the biggest series of headcuts since Robespierre was in short pants as carrier consolidation continues this year – and as big vendor consolidation almost certainly follows.
Here’s the merger headless-count, so far:
- Verizon + MCI = 7,000 axed
- AT&T + SBC = 12,000 now, 13,000 to follow the deal
(See Verizon's 'Beachfront Property' and SBC to Buy AT&T for $16B.)
And when those companies get together – or get snapped up – more citoyens will face the tumbril.
Right now, consolidation and job loss isn't exclusive to the telecom space. In January alone, U.S. employers conducted 1,457 mass layoffs -- the highest number in 12 months -- involving 150,990 workers, according to the latest info from the U.S. Bureau of Labor Statistics (BLS). The BLS measures the data by checking for new filings of unemployment insurance benefits and defines a "mass" layoff as one involving 50 people or more. There were 246 more mass layoffs in January than in December 2004. But January's numbers were nowhere near the mass layoff highs recorded in September 2001. That month saw 2,409 mass layoffs affecting 277,214 workers.
A similar picture is emerging on the other side of the Atlantic, where the Netherlands' KPN Telecom NV (NYSE: KPN) and Denmark's TDC A/S (Copenhagen: TDC) are among incumbent carriers announcing layoffs (see Eurobites: Mixed Fixed Fortunes).
It's tough stuff to ponder, but it only makes sense now that the efficiencies of all IP networks, outsourcing, and network intelligence have come home to roost.
While you're readying your office merger betting pools, we'll move on by bringing you the most interesting hirings and firings from the past few days:
The only major executive appointment the company has made of late, was its February announcement that Turin Networks Inc. founder Philip Yim had taken the job of senior VP, global product development. Calls to Allied Telesyn's most recently listed media contacts were not returned.
We wrap up, as usual, with a summary of other industry appointments and disappointments from the past few days:
- Eurobites: Mixed Fixed Fortunes
- Bookham Still Bleeding
- Avanex Slips on Tepid Outlook
- France Telecom's Got a New Chief
- Rosen Resigns From Tellabs
- Sayonara, Seranoa?
- Siemens Ponders Job Cuts
- SureWest CEO to Retire
- JDSU CFO to Depart
- Nortel's CEO: Next to Go?
- Level 3 Director Resigns
- Agility Is Alright, Too
— Phil Harvey, News Editor, Light Reading