NEW YORK-SBC Communications Inc. told investors at the Lehman Brothers Fifth Annual Telecom, Trends & Technology Conference that it plans to reduce its workforce by 3,000 to 4,000 employees during the current fourth quarter as part of an ongoing staff reduction program through both attrition and enhanced retirement options. The company said it expects to take a one-time, pre-tax cash charge of up to $150 million to cover the reduction, which could result in as much as a 3-cent reduction per diluted share during the quarter.
The telecommunications company also said it plans to move Cingular Wireless L.L.C., of which it owns 60 percent, to what it termed a “strong growth track.” SBC highlighted numerous achievements the wireless carrier has made during the last three quarters, including stronger subscriber growth, being ahead of schedule on its GSM network overlay, implementing steps to improve network coverage and capacity through spectrum acquisitions, and tying Cingular closer to its wireline parent companies with its FastForward integration product.
