dwight@timeinc.UUCP (Dwight Ernest) (08/22/85)
URGENT Eds: Version moved financial wires. NEW YORK (AP) - American Telephone & Telegraph Co. said today it is eliminating 24,000 jobs in its Information Systems group, about 20 percent of the workforce in its consumer and business communications equipment unit. The Communications Workers of America, which represents AT&T employees, said the cost-cutting step was outrageous and would create major obstacles to next year's contract talks. Robert E. Allen, chairman of the Information Systems unit, said the cuts were necessary to reduce costs and improve profit margins in the highly competitive field. The company said that about 7,400 of the job cutbacks were under way and that most of the posts would be eliminated by the end of this year. ``Our basic response in one word is `outrage,''' said Francine Zucker, a spokewsoman for the Communications Workers of America in Washington. The union also complained that managers were not being asked to sacrifice as much as the company's workers. ENDIT AP-NY-08-21-85 1430EDT ----- Comments? 24,000 people was approximately the size of the entire population in the town where I grew up. Time Incorporated has about 25,000 total employees in all divisions around the world. I am shocked and amazed. Is this the beginning (or the middle) of the long-heralded shakeout? -- ----------------------------------------------------------------------------- --Dwight Ernest KA2CNN \ Usenet:...vax135!timeinc!dwight Time Inc. Edit./Prod. Tech. Grp., New York City Voice: (212) 554-5061 \ Compuserve: 70210,523 Telemail: DERNEST/TIMECOMDIV/TIMEINC \ MCI: DERNEST "The opinions expressed above are those of the writer and do not necessarily reflect the opinions of Time Incorporated." -----------------------------------------------------------------------------