March 3, 1997
AT&T Watches Stock Plumet 7.5% in One Day
We told you long ago like some repetitive prophet that AT&T was doomed! Finally it becomes evident.
AT&T once again is moving towards downsizing to increase the bottom line - profits. Wall Street sharks, who also are know sometimes as investors and analysts just are not happy with the huge numbers AT&T keeps posting and sees any decrease in the profits as highly negative.
AT&T's stock, which is the most widely held stock plunged 7.5% after new President John Walter announced increased costs and rivalry would depress what watchers call "sluggish" profits this year.
Analysts took turn poking the problems they think AT&T has including an ovesized staff and alack of business strategy.
Bottomline Walter plans on cutting $2.6 billion in costs over the next two years and says i would hit every part of the business. Somehow we believe this again will mean massive job cuts.