Pulling the Belt Tighter At At&T

Chairman Olson announces the elimination of 27,400 jobs

Rumors of sweeping layoffs and cost cuts had been causing high anxiety at the company for weeks. Even so, when AT&T announced last week that it would close some of its plants, eliminate 27,400 jobs and take a $3.2 billion write-off against its fourth-quarter earnings, the sheer magnitude of the reductions was stunning. The job cuts alone were the largest in the firm's history, and the write- off will all but wipe out 1986 after-tax earnings, which had been expected to approach $2 billion. While one spokesman for the Communications Workers union accused the company of "mean and inappropriate" behavior for...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!