AT&T; Freezes Hiring, Intends to Cut More Jobs

AT&T; Corp. said it has frozen hiring and intends to eliminate jobs under a plan to cut $2 billion in costs by 2001. The largest U.S. long-distance phone company, which began the hiring freeze Aug. 19, hasn’t determined how many jobs will be cut, spokeswoman Adele Ambrose said. It cut more than 20,000 jobs last year and reduced selling, general and administrative expenses by $1.6 billion. AT&T; has 149,000 employees. Since joining AT&T; in November 1997, Chief Executive C. Michael Armstrong has said the company must slash costs and invest in new businesses such as cable television. In April, when AT&T; announced that it would buy cable TV operator MediaOne Group Inc. in a transaction now valued at $51.3 billion, the company said it would cut $2 billion more in costs by 2001. AT&T; shares have dropped 30% from their record close of $63.33 on Feb. 3, hurt by investors’ concerns that falling long-distance rates may erode revenue and profit. AT&T; shares were unchanged at $44.50 on the New York Stock Exchange.