SBC-AT&T to cut 13,000 jobs

After SBC's recent $16 billion acquisition of AT&T Corp, it now plans to cut 13,000 jobs after the deal is closed by early 2006.

The merger with AT&T corp would make SBC one of the largest telecommunication companies in the world.

This decision to lay off staff was announced at an investor's meeting held on Tuesday. Company officials said the annual savings from the SBC-AT&T deal are expected to be about $200 million to $600 million by the second half of 2006.

About 60 percent of the expected cost savings will come from job cuts. The reduction will be in different departments from sales, engineering, legal and operations.

The company also has plans to cut an additional 12,000 jobs from both the companies a year later.

SBC currently has a work force of 163,000, while AT&T has 47,000 employees.