AT&T (T) is set to reduce headcount by 4,650 over the coming months as the firm continues to trim costs ahead of its April 22 earnings report. The telecom giant is struggling to eliminate redundancies and managers are expected to bear the brunt of the blow. The cuts come on top of the 10,000 positions axed in December of 06 with the $86 billion purchase of Bell South. Ma Bell lost 1.6 million residential lines last year as customers switched from landlines to wireless and cable services. From Bloomberg:
The economy may be to blame,” Credit Suisse’s Christopher Larsen said in an interview. “Wireless substitution is probably a bigger issue. Headcount reductions are a fact of life in a business where you’ve got certain areas that are shrinking.” The New York-based analyst is neutral on whether to buy AT&T shares.
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