AT&T; Plans Major Layoffs in Computer-Phone Unit

American Telephone & Telegraph plans widespread layoffs in its computer and office-phone equipment division to improve “the bottom line,” the company told employees Wednesday.

AT&T; didn’t deny reports that it is considering the elimination of as many as 20,000 jobs from its Information Systems unit. The company also suggested that it might close certain sites and drop certain activities.

“We must achieve additional significant cost reductions in every part of our company, which inevitably will translate into fewer work assignments, fewer work locations and fewer workers,” Information Systems Chairman Robert E. Allen told employees.

However, Allen said no decisions have been made on the number of jobs to be eliminated or on how many will be accomplished by layoffs instead of attrition, early retirement and other means.

The division has 118,000 of AT&T;’s 360,000 employees.

AT&T; began working last year to slash costs to be more competitive. Since Jan. 1, the Information Systems division has eliminated about 4,800 jobs. About 1,900 were laid off at a Shreveport, La., plant that makes telephone equipment, one of the areas in which the company faces sharp new competition as a result of its court-ordered divestiture.

The company employs 23,000 in California, including 12,000 in Southern California. About 800 California jobs have already been identified as “surplus,” a spokeswoman said. The people who fill the jobs are working while other assignments are sought for them, she said.

AT&T; said it made the comments to several hundred employees at a previously scheduled meeting in Parsippany, N.J., after the Wall Street Journal reported rumors that the firm was considering layoffs of 5,000 to 20,000.