Local Communications Workers Facing Job Loss

AT&T to Stop Marketing Residential Phone Services to Consumers:

AT&T Corp. disclosed plans to stop competing for traditional residential phone customers, marking a momentous shift in the strategy of an ailing phone giant whose predecessor incorporated in 1885.

"AT&T CFO Tom Horton said the company expects the new strategy to have a significant impact on jobs. The company has reduced its headcount by 8 percent this year, he said. AT&T had 61,600 employees at the end of last year.

Beyond the impact to its local and long-distance residential services, AT&T's decision also will affect strategic initiatives the company has pursued, including Internet-based phone service and wireless service targeted for consumers, AT&T executives said. AT&T offers Internet-based phone service to consumers in 100 markets, but the service is limited by the number of homes with broadband connections. "

The No. 1 long-distance phone company will shift its resources to the business unit, which comprises roughly 70 percent of revenue. Its consumer unit has been under heavy attack for years, with billions of dollars in sales evaporating due in part to competition from the biggest local phone companies and the predominance of wireless service.