SBC Says It Will Cut 5,000 Jobs
Tue May 14,12:37 PM ET
SAN ANTONIO, Texas (AP) - SBC Communications Inc. said Tuesday that it will slash another 5,000 jobs, or about 2.6 percent of its work force, in the second quarter because the slow economy continues to curb its revenue.
The cuts come atop the 10,000 positions already eliminated since last fall.
The San Antonio-based telecom giant said the job reductions will be distributed throughout its 13-state service area among managers and non-management workers who do not directly serve SBC's customers.
SBC has said in recent months that it planned to be very aggressive in looking for ways to trim its business costs.
Company president William Daley also attributed part of the cuts to a difficult regulatory environment.
He says SBC has to meet regulatory burdens that its competitors don't have to comply with, and that those burdens discourage SBC from investing in new infrastructure.
In midday trading on the New York Stock Exchange (news - web sites), SBC shares were up 90 cents a share at $32.95.