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SBC to cut 7,000 jobs
The telecom company said Q4 earnings fell 17%, to $754M
January 26, 2005 12:00 PM ETComputerworld -
SBC Communications Inc. today said that it will cut 7,000 positions companywide and reported that its earnings for the fourth quarter of 2004 fell 17% to $754 million, or 23 cents per share. That's down from $905 million, or 27 cents a share, for the fourth quarter of 2003.
SBC said special items affecting its earnings during the period included $244 million in cash charges for severance payments related to the workforce reductions, changes to the company's management pension plan and $396 million in costs related to Cingular Wireless LLC's acquisition of AT&T Wireless Services Inc.
SBC owns 60% of Cingular Wireless.
SBC said its revenue in the fourth quarter totaled $10.3 billion, up from $10 billion a year earlier. It cited an increase in DSL and long-distance sales for the revenue uptick.
During 2004, SBC had a net reduction in its total workforce of more than 6,000, as the company worked to streamline and standardize operations while enhancing service. Approximately half of SBC's 2004 workforce reductions came in the fourth quarter. Previously, SBC had said that its workforce reductions could exceed 10,000 jobs through the end of 2005.
"SBC has a disciplined, focused plan to compete and grow in an evolving industry, and we are executing that plan aggressively," SBC's CEO Ed Whitacre said in today's statement. "I am very positive about 2005."
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