AT&T; May Trim Up to 150 Executive Jobs

AT&T; Corp. may eliminate as many as 150 managerial positions, or about 25% of its executive work force, as part of an ongoing drive to cut $2 billion in operating costs by the end of this year. The Basking Ridge, N.J.-based company declined to confirm the specifics of a story in the Wall Street Journal reporting the plans for the 25% reduction, but a spokesman said the figures mentioned in the article are within the range of possibility. “I have not seen such a number, but I would certainly not rule out such a percentage,” said Burke Stinson, who stressed that AT&T;’s companywide cost-cutting remains focused on poorly performing units such as the shrinking long-distance business. Cost-cutting has become a critical way for AT&T; to maintain its earnings growth at a time when it is investing billions of dollars in areas such as cable television and wireless telecommunications. At the end of last year, AT&T; had 147,789 workers. The consumer long-distance business accounted for about 22,600 of the total. The Journal, citing unidentified sources, reported that AT&T;’s cost-cutting efforts are likely to include the elimination of hundreds, if not thousands, of positions this year. ATT shares fell $1.56 to close at $50.50 on the NYSE.