BellSouth reduces manager layoffs by 200

Bellsouth amends previously announced layoff plans in the light of AT&T's proposed acquisition.

BellSouth has amended job cut plans disclosed late last year following AT&T's announced plans to acquire the carrier.

BellSouth now plans to cut 1,300 managers through a voluntary program offering a "special termination benefit," according to an 8-K filing with the Securities and Exchange Commission this week. This is 200 fewer employees than the 1,500 target announced last December, which also included an involuntary reduction program should not enough staffers opt for voluntary departure.

BellSouth has eliminated that involuntary option under its amended reduction program.

AT&T announced it will eliminate 10,000 positions after it acquires BellSouth.

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BellSouth has amended job cut plans disclosed late last year following AT&T's announced plans to acquire the carrier.

BellSouth now plans to cut 1,300 managers through a voluntary program offering a "special termination benefit," according to an 8-K filing with the Securities and Exchange Commission this week. This is 200 fewer employees than the 1,500 target announced last December, which also included an involuntary reduction program should not enough staffers opt for voluntary departure.

BellSouth has eliminated that involuntary option under its amended reduction program.

AT&T announced it will eliminate 10,000 positions after it acquires BellSouth.

BellSouth estimates that the amended workforce reduction plan will result in a $45 million after-tax credit to income in the first quarter of 2006. The charge for the early termination benefit will be recorded in the second quarter of 2006 upon acceptance of the offer by the affected employees.

The carrier estimates that an after-tax charge of approximately $100 million will be recorded in 2006 related to this workforce reduction initiative, with approximately $85 million recorded in the second quarter. The total after-tax charge taken in 2005 and 2006 related to the workforce reduction initiative is expected to be $107 million.