Cingular to cut 7,000 jobs

NEW YORK: Cingular Wireless will cut about 7,000 jobs, or 10 percent of its work force, as it integrates recently purchased AT&T Wireless, the company has announced.

Cingular, owned by SBC Communications Inc. and BellSouth Corp., became the largest U.S. mobile service after its $41 billion takeover of AT&T Wireless in October.

The job cuts, which will mainly affect administrative employees, will take effect over the next 12 to 18 months beginning in January, spokesman Clay Owen confirmed.

Cingular, which expects to save $ one billion in 2006 and $ two billion in 2007 as a result of the deal, promised in October that there would be no lay-offs until the start of 2005.

SG Cowen analyst Tom Watts estimated that Cingular could end up laying off more than 10 percent of its workers.

"I would be surprised if we don't see more going forward," said Watts. "We're taking two companies that were relatively inefficient and combining them so there's probably going to be overlap in a number of functions."