SBC Communications Inc., the second-largest U.S. local-phone company, may cut as many as 20,000 jobs to reduce costs in its declining wireline business, Lehman Bros. analyst Blake Bath wrote in a note to clients.
SBC has too many employees for the number of local-access lines it has, Bath said in an interview. SBC has about 29 employees per 10,000 local lines, more than the industry average of 25, he said. The San Antonio-based company could save $600 million to $1.2 billion a year by reducing its work force by 10,000 to 20,000, Bath wrote.
Chief executive Edward Whitacre has counted on attrition to eliminate jobs as employees retire, quit or die, and by moving work from declining businesses to growing ones. He has cut more than 7,000 jobs in the past year through attrition. That remains SBC's policy, company spokesman Walt Sharp said.
SBC and its local-telephone competitors are losing local- phone customers to wireless and Internet-based phone services. SBC customers disconnected 654,000 lines in the third quarter, leaving the company with 52.9 million. SBC is making up for the losses by expanding other products, such as fast Internet access over DSL and accelerating plans to build a fiber-optic network to deliver video.
More ... http://www.kansas.com/mld/eagle/business/10102844.htm
The South (Texas) receives its reward for going red. Thus begins the real agenda. After all, they don't want the jobs or economy, they want gay marriage ban! :roll:
SBC has too many employees for the number of local-access lines it has, Bath said in an interview. SBC has about 29 employees per 10,000 local lines, more than the industry average of 25, he said. The San Antonio-based company could save $600 million to $1.2 billion a year by reducing its work force by 10,000 to 20,000, Bath wrote.
Chief executive Edward Whitacre has counted on attrition to eliminate jobs as employees retire, quit or die, and by moving work from declining businesses to growing ones. He has cut more than 7,000 jobs in the past year through attrition. That remains SBC's policy, company spokesman Walt Sharp said.
SBC and its local-telephone competitors are losing local- phone customers to wireless and Internet-based phone services. SBC customers disconnected 654,000 lines in the third quarter, leaving the company with 52.9 million. SBC is making up for the losses by expanding other products, such as fast Internet access over DSL and accelerating plans to build a fiber-optic network to deliver video.
More ... http://www.kansas.com/mld/eagle/business/10102844.htm
The South (Texas) receives its reward for going red. Thus begins the real agenda. After all, they don't want the jobs or economy, they want gay marriage ban! :roll:
