ATLANTA-Cingular Wireless L.L.C. plans to eliminate approximately 2,500 to 3,000 jobs in a reorganization the carrier said would better serve customers in today’s segmented marketplace. The cuts are expected to cost the company $70 million in one-time pre-tax costs.
The job cuts are scheduled to begin in Cingular’s sales operations where the carrier plans to shift its previous geographic focus to a channel-based effort aimed at business-to-business, national retail operations, and agent and company-owned retail stores.
Cingular also said it would reduce the number of employees in other departments including marketing, network finance and human resources.
“Cingular was formed two years ago from eleven different brands,” said Stephen Carter, president and chief executive officer of Cingular. “In that time, we have learned how we can operate more efficiently and more effectively. Cingular is one of the few profitable major wireless companies in the Untied States and we are making these moves to position the company for continued profitable growth.”
In a competitive pricing turnaround, Cingular also cut the number of minutes included in its national price plans for consumers on its TDMA network. The cuts range from 100 fewer anytime minutes for its $30 Cingular Nation 250 plan, now called the 150 plan, up to 1,000 fewer minutes on its formerly named $200 Cingular Nation 3000 plans.
Cingular defended the move by saying the new plans are more in line with similar plans offered by its competition and that it expects to add a new national plan at a lower rate for customers who make calls on the carrier’s network.
Cingular’s current nationwide plans provide for no roaming or long-distance charges regardless if a customer is on the carrier’s network, while similarly priced plans from Verizon Wireless Inc. and AT&T Wireless Services Inc. only apply to calls made on the carriers’ network.
Pricing plans for customers on the carrier’s growing GSM network were not effected.
