will take a pretax restructuring charge of about $1 billion in the fourth quarter, primarily because of a job-cutting program that will eventually take out around 10,000 employees.
The job reductions affect the company's business, consumer and corporate divisions. More than half of the employees who will be let go are in management. About 5,100 workers, or more than half of all the affected employees, are no longer on the payroll or have already been notified.
AT&T said about 5,000 additional workers will be taken off the payroll in 2002.
examined long-distance companies, in particular AT&T and
, who were quietly eliminating employees. Last June, AT&T
denied a story that said the company was planning 10,000 to 15,000 job cuts.
Shares of AT&T were dropping 16 cents, or 0.8%, to $18.48 in afternoon trading on the
New York Stock Exchange. WorldCom was off 7 cents, or 0.5%, to $14.65, and
was losing 30 cents, or 1.5%, to $19.63.
In the last 52 weeks, AT&T has traded in a range of $14.75 to $25.15.
According to First Call, analysts, on average, expect AT&T to earn 4 cents a share in the fourth quarter on revenue of about $9.45 billion. If the company meets that earnings estimate, it would match the bottom line AT&T recorded in each of the last two quarters.