SBC May Cut 13,000 Jobs After Merger

SBC Communications Inc. said Tuesday that it expected to eliminate about 13,000 jobs after its $16-billion acquisition of AT&T; Corp. closes, but the telephone company stressed that many of those positions could be cut through attrition rather than layoffs.

The projection came during an occasionally heated meeting with investors a day after SBC announced plans to acquire AT&T;, its former corporate parent, in a deal that would create one of the world’s biggest telecommunications companies.

The meeting included some pointed questions from analysts and money managers who asked whether AT&T; had shopped itself to anyone other than SBC and whether it sold itself too cheaply despite the company’s rapidly deteriorating business.

The job cuts would come in addition to existing plans at the two companies to eliminate at least 12,000 jobs before the merger is finalized at least a year from now. Combined, the 25,000 expected cuts represent about 12% of the current workforce at the two companies.

Overall, workforce reductions would generate nearly 60% of the cost savings that the merger is expected to create, SBC executives said.

SBC executives also offered a more optimistic projection of how long the deal might take to gain approval from federal, state and foreign regulators, saying the merger should be completed by early 2006. On Monday, the target closing date was put closer to mid-2006.