Headcount: Vendor Vivisection

Light Reading ^ | MARCH 01, 2005 | Phil Harvey

[Willie Green]

The blades are falling.

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 with so much of the North American carrier capex now in the hands of so few companies, industry observers doubt that Lucent, Nortel, Redback, Avici, Carrier Access, Verilink, Sonus, and Paradyne will all end 2005 as independent companies.

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....

[D-fendr]

The Cingular/ATT Wireless merger is a disaster from my experience. Cingular's intentions seem to be only to cannibalize ATT customer base by letting them hang with worse and worse service.

[leadhead]

Our Cingular service is better since they glommed on to AT&T's cells.

Someone will setup a mostly satellite network (Iridian style) and the chase will begin again. Consumer technology seems to have a half life of ten days.