NEW YORK, Oct. 11 -- AT&T Corp. and Comcast Corp. said Wednesday that 1,700 jobs would be cut at AT&T's cable unit in Denver after the two companies close their $28.6 billion merger combining the nation's No. 1 and No. 3 cable companies, according to Reuters.
The companies said 675 employees have been told their jobs would be cut once the deal closes, according to the Reuters article. A total of 1,700 jobs, or about 30 percent of those at AT&T Broadband's Denver headquarters, will be cut during a transition period of six to nine months after the merger closes. The deal is expected to close at the end of the year.
Most of the job cuts involve executives and managers, the companies said. They had said earlier this year that the new headquarters after Comcast's purchase of AT&T Broadband would be in Philadelphia.
The report coincided with a series of organizational changes announced by chairman and CEO-elect David Dorman: Betsy Bernard, president-elect of the company, will become president of AT&T when the company completes the spin-off and merger. She also will be responsible for the company's network services group, international ventures and AT&T Labs. Dorman said Bernard will immediately head up AT&T Business; she will assume the role of AT&T president when the Comcast agreement closes and Dorman becomes chairman and CEO of AT&T. At that time, AT&T's current chairman, C. Michael Armstrong, will leave to become chairman of AT&T Comcast.
John Polumbo, currently senior vice president-AT&T Business, will succeed Bernard as president and CEO of AT&T Consumer. AT&T also announced that Connie Weaver, vice president-Investor Relations, was named executive vice president-Public Relations and Brand Management.
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