AT&T; Says It’s Ahead of Schedule on Cuts

AT&T; Corp. said it expects to reach its goal of trimming 18,000 jobs by the end of this year, a full year ahead of schedule. When it announced the cutbacks in January, AT&T; said it expected to take two years to eliminate the 18,000 jobs. But because of the unexpectedly high number of managers accepting AT&T;’s early-retirement package, the company now foresees meeting the goal by the end of 1998. AT&T; spokesman Burke Stinson said the company has cut 16,000 jobs so far and expects the final wave of early retirements to trim another 2,000 positions, bringing the work force to 108,000. He attributed the higher-than-expected rate of early retirements to the booming stock market, plentiful job opportunities and a strong retirement incentive package, which included higher pensions and expanded eligibility for benefits. Stinson said additional job cuts may occur in 1999. “We will continue to trim jobs in areas that aren’t growing for AT&T--traditional; voice and administrative work--and we’ll continue to add jobs in the businesses that prove to be high growth for us, such as Internet wireless,” he said. The company, based in Basking Ridge, N.J., had expected 10,000 to 11,000 to accept retirement packages, but 15,300 did so, Stinson said. AT&T; shares rose 44 cents to close at $75 on the NYSE.