SBC plans layoff of up to 4,000 nationwide

The Milwaukee Business Journal ^ | 12-09-03

[Willie Green]

For education and discussion only. Not for commercial use.

Top executives of SBC Communications Inc. said Tuesday that, as part of an ongoing staff reduction program, the telecom company plans to reduce its workforce by 3,000 to 4,000 in the fourth quarter. The cutback will come in the form of both attrition and an enhanced retirement program.

SBC management said it expects to take a one-time, pre-tax cash charge of up to $150 million, or as much as 3 cents per diluted share, in the fourth quarter, to cover the costs of the downsizing.

SBC executives made the remarks at the Lehman Brothers Telecom Trends & Technology Conference in New York City.

The company did not specify which operations would receive the job losses. However, last month, SBC announced that it would be closing down and consolidating call centers.

SBC Chief Financial Officer Randall Stephenson also said the company's management believes much of its growth potential will come from expanding its ability to bundle various communications products and services.

In support of SBC's bundling strategy, the company has accelerated subscriber penetration in key growth products, including digital subscriber lines (DSL).

The company is also taking steps to enhance Cingular's network coverage, including a pending spectrum acquisition from NextWave Telecom and the signing of new roaming agreements, Stephenson said.

The large-business market is a natural opportunity for SBC, Stephenson said, since nearly half the Fortune 500 companies are headquartered in areas where SBC has long-standing local service relationships. SBC's current share of this market is small, but now that it has approvals to offer long distance in all of its 13 states, the company plans to move forward aggressively in the large-business sector, Stephenson said.

San Antonio, Tex.-based SBC is the largest telephone company in southeastern Wisconsin.

[My2Cents]

...All because I cancelled my SBC Internet service!

Seriously, if SBC showed it cared about customer service, they might not be in the pickle they're in.

[anniegetyourgun]

Oh, thank heavens, it's just those guys. I was worried about the real SBC for a moment there. Good coffee is MUCH more important in the scheme of things.

[Trust but Verify]

I'm an SBC Wisconsin employee. Unfortunately, with the market share declining, what else can a company do? While a minor point, I do disagree with the term 'layoff'. People exiting the company will do so with a very generous severence/retirement package.

[lelio]

How many layoffs is this for SBC in the past 3 years? Reminds me of the satire of laying off 120% of your employees.

[Trust but Verify]

When your company is no longer the only game in town, you are going to lose customers to competitors. When that happens, you no longer need the same number of employees. It's simple, really.

[plain talk]

Fourth quarter? There's like 3 weeks left in the fourth year. This stinks not giving them more notice unless maybe they were just late getting this out to the press. Merry Christmas, you have no job.

[Eala]

plans to reduce its workforce by 3,000 to 4,000 in the fourth quarter. The cutback will come in the form of both attrition and an enhanced retirement program.

Hm. Okay. Let's run the numbers:

4000 / 90 = 44.4 people/day. 44.4 / 50 = 0.88 people per day per state.

[sd-joe]

>> "Seriously, if SBC showed it cared about customer service, they might not be in the pickle they're in." <<

Boy, isn't that the truth. SBC has the absolutley WORST customer service.

[hdrider]

Lets see, the "ROLL OUT PACKAGE" happened last Friday. The COMPANY initiated a "SEVERANCE PACKAGE", not an ENHANCED RETIREMENT PACKAGE. Which means anyone with ANY amount of service is eligible to take a severance, with a $25,000 bonus. All taxed, no roll-overs allowed. So the prorate for someone with 5 years service gets 10 weeks pay and 25k, before tax. 6 years service gets 12 weeks pay and 25k,etc..etc..up to 25 years service and above gets 53 weeks pay and 25k, BEFORE TAX. Your lucky to get half of the money after the IRS takes their share.
NOT A HAPPY PACKAGE TO MANY!

Also, decisions have to be made by 12/15 and people taking the offer will leave the COMPANY on 12/29/03.

This is fine for the younger people that want to change their careers, (many don't see a future here), but those of us with many years of service think it stinks. The COMPANY has made better offers in the past. And if I was retirement eligible then I would have gone.
The COMPANY 6 years ago made a BIG mistake by over hiring and are now relegated to terminating a percentage of THEIR MISTAKE if a quota is not met in the voluntary severance package plan.

MERRY CHRISTMAS!

[plain talk]

Oh, so this is voluntary? I must have read too fast. I inferred that this was an involuntary layoff. Thanks.

[dfwgator]

When your company is no longer the only game in town, you are going to lose customers to competitors. When that happens, you no longer need the same number of employees. It's simple, really.

Furthermore those competing companies should be adding employees at the same time.