AT&T To Lay Off 12,000 Employees?
Lots of chatter on the Internet around AT&T laying off between 10,000 and 15,000 employees or about 4 percent of its workforce. Of course, this is not surprising as everybody is laying off people right now. Unlike previous times, this is a real layoff, not a voluntary buyout.
I’d imagine, though, that with 160,000 plus workers, AT&T is bloated just like many government and private companies. It’s always sad to hear when someone / anyone loses their job. It’s especially discouraging when it happens during the Christmas holiday season.
This layoff is particularly interesting because of how it might affect iPhone sales and service. However, it appears that the layoffs are targeted toward employees who are primarily on the voice side of the business. The traditional voice business has been steadily losing customers to wireless / cell phone service for the last several years. AT&T also said that they would be hiring employees on their more profitable cell phone business.
These layoffs AND hiring come on the heels of consumers moving rapidly to adopt cell phones as their primary communication method.
Times are a-changing indeed in this industry. There so many cell phone / pda options for people now that consumers will likely see some real benefits from these slow economic times. For example, one of the latest rumors is that Walmart will start selling a $99 iPhone. The rumor continues that this will be a 4G version which was very popular, especially when the first iPod Touches were released.
Additionally, Google, of course, launched their heralded G1 a couple of months back. Reviews of this device have been lukewarm. But, it does speak to the fact that competition is healthy and will get even more intense as mobile device manufacturers try to knock off the king of the hill – Apple.
However, I don’t see widespread consumer adoption of any one device or operator until one of the big carriers drops their cost / min, cost / text, cost / data plan significantly. All of the operators continue to hold onto what little margins they have by increasing prices in one area or the other.
I know this is true for the iPhone for example. One cannot buy an Apple iPhone without at least buying the $30 data plan. And, a minimum, ya gotta have texting. Kaching … add at least $5 per month for 200 messages. And finally, ya also gotta get a minimum voice plan of $70. That’s a WHOPPING $105 for an individual plan. Talk about sockin’ it to you!
And, what is this nonsense about being charged to pay your bill? How absurd is that? If you decide to use a “live” operator rather than an automated system, you “could” be subject to a fee.
Remember the good old days when you went to fill up your gas tank. The attendant came out washed your windows, checked your oil, and then filled up your tank? Some of them even shook you hand.
No more …
True price reductions will only come from healthy competition, both on the DEVICE side and on the PLAN side. I applaud Google for bring some competition to the device side. But, hey, these devices are pretty much a commodity anyway.
One of the big carriers needs to start pushing the envelope on cellular rate plans. Then, the average consumer can begin to see the real benefits of affordable pricing.
Call your congressman today!



