Business Systemics LO6204

Rol Fessenden (
24 Mar 96 15:38:30 EST

Replying to LO6096 --

In the March 18th Wall Street Journal is an article on AT&T that confirms
everything we have learned about layoffs -- that they do not cause the
stock price to rise, but tend to cause it to drop.

Despite a lot of confusion, the plan is still to downsize by 48,500
people. Some people have been 'convinced' to take the voluntary package,
so the involuntary package may affect fewer people.

The stock price went up when the announcement of layoffs was first made,
but is now down 10% from its high. And the layoffs are not complete yet.
It will be interesting to see if they can defy the odds, but so far this
downsizing is following the footsteps of most other downsizings.


Rol Fessenden LL Bean

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