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AT&T Layoffs 2016: ‘Relatively Modest’ Management Staff Cuts Planned

AT&T (NYSE: T) plans to lay off an undisclosed number of managers before the end of 2016, according to The Dallas Morning News. The AT&T job cuts arrive as telecom companies worldwide continue to shift their business models away from legacy phone services and toward network-centric services.

An AT&T spokesman did not say whether the number of layoffs would be in the hundreds or thousands, but described them as “relatively modest,” the paper stated. AT&T has about 277,000 employees around the world, according to the report.

> Related: Technology industry layoffs listed by company and date

AT&T isn’t alone in the cuts. CenturyLink (NYSE: CTL) in September announced plans to cut 3,500 employees — or 8 percent of the company’s workforce. Amid the contracting legacy business, CenturyLink and is racing toward network functions virtualization (NFV) and other next-generation technologies.

Cloud Services Didn’t Save Telcos

Both AT&T and CenturyLink have also reconsidered their respective cloud strategies. AT&T punted its managed hosting business to IBM’s cloud in December 2015. However, the company has been building out hosted voice and collaboration services for channel partners.

More recently, CenturyLink has been trying to sell roughly 60 data centers, many of which house the company’s cloud services. CEO Glenn Post has indicated potential moves in that area could surface this year. Bidders apparently include four private equity firms.

Verizon Communications (NYSE: VZ) is in a similar position. The telecom giant has been striving to sell off some data centers, with most pundits expecting a decision before the close of 2016.

To track ongoing layoffs across the IT industry, visit ChannelE2E.com/layoffs.

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