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Cingular Wireless is preparing to reduce its workforce by 10% starting next year.
According to The Associated Press, Cingular, on the heels of closing its $41 billion acquisition of AT&T Wireless, will eliminate 6,800 mostly administrative jobs after the new year. The AP gathered its information from an interview with Cingular CEO Stan Sigman.
A Cingular spokesman confirmed the cuts though he said the company hasn't determined "hard and fast" numbers yet. Departments within the company have completed staffing evaluations, which are being reviewed, he added.
The union of Cingular and AT&T Wireless was announced in February. Cingular is paying about $15 per share for its competitor.
Before the merger, Cingular had more than 24 million subscribers, and in 2003 earned revenue of approximately $15.5 billion. After the merger, it now has more than 46 million customers, surpassing Verizon Wireless with 40.4 million customers.
The combined company's revenue will be about $32 billion.
Cingular had to divest itself of wireless customers and other assets in 13 U.S. markets in order to gain Department of Justice approval for the merger. The combined company has licenses to operate wireless service in 49 states and in the top 100 U.S. metropolitan areas.
Cingular also says it offers customers the ability to make calls on six continents and in more than 100 countries. In addition, General Packet Radio Service data roaming is available in more than 50 countries for laptops, PDAs and other data devices, the carrier says.
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