Monday, June 23, 2008

...compAny dOwnsizing...

Align to the said issue, downsizing, according to wikipedia, it is about lay-off of employees to cut labor cost and other issues regarding to the company. One company that undergone downsizing is one of the big or said to be the biggest telecommunication in America. the AT&T Telecommunications.

Last April of 2008, Telecom giant AT&T lay off 1.5 percent of its employees, primarily in management, in an effort to streamline its operations. AT&T had about 310,000 employees at the end of 2007, meaning the layoffs affect about 4,650 workers.

The said lay-off is due to "next step" in streamlining company operations in an effort to operate more efficiently after recent mergers between parent company SBC, the old AT&T and BellSouth. And still it it so to cut labor cost so that the profit of the said telecommunications increases from 2007 to 2008. The layoffs mean AT&T will take a one-time charge of US $374 million during the first quarter of 2008 and AT&T reported a net income of $3.1 billion for the fourth quarter of 2007. It's revenue for the quarter was $30.3 billion.

Still, the company helps the employee who has been lay-off by giving them another chances to apply again to the said company. The company still hires additional employees to support growth areas.

Reference:
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9078839
http://www.itworld.com/att-layoffs-080418

3 comments:

hannah hernandez said...

I have done the same research about a telecom company that downsized its employees. The company I read about was PLDT, a national telecom company, the biggest in the country and I think their reason and AT&T's reason for downsizing are the same. Its because of technology advancement and consumer demand. But in my opinion, in what I read about in this article is that PLDT handled their lay-offs much better than AT&T because they provided for monetary benefits and training for redeployment.

kharen said...

hmmmm..
i hope na sa atong company trabahuan puhon kai dili magdownsize..
hehehe..
hmmm,downsizing is a great factor that can create job failure in our society. But the mere fact istaht it has also some factors, why it happened. And as same as the company AT&T, they have gone to other factors who can create work as well to those who have been lay-off.

kEt kAwEn said...

like what lady said, i hope na atong company dili magdownsize.

well, in accordance to the downsizing of the company you have tackled, it really turned out that even big companies do have downsizing, but as well as called being a big company they were able to help those who have been laid off..