AT&T Latin America to lay off 10 per cent of staff

AT&T Latin America Corp. will let go of 10 per cent of its employees and has reduced its revenue expectations for 2001 because economic turmoil in the region and in the United States has affected sales, the company announced this month.

About 190 employees will be laid off, mostly in the network and operations divisions. Departments that are also seeing job cuts are finance, information technology, communications and human resources. Budget cuts will have less of an impact on the sales and customer support departments, the company said in a statement. The company will take a one-time charge related to the job cuts in the fourth quarter.

The company now expects its 2001 revenue to be no higher than US$152 million. Previously, it expected revenue to come in at between $152 million and $160 million. AT&T Latin America’s shares (ATTL) were at $1.49 in mid-morning trading Wednesday, up $0.09 or 6.43 per cent. The stock’s 52-week high is $8.25.

AT&T Latin America has been affected by falling prices in the region and economic problems in Argentina, Chile and Brazil, the company said. AT&T Latin America offers broadband telecommunication services, such as data transmission, e-commerce services and high-speed Internet access, to businesses in 14 major metropolitan areas in those three countries and in Colombia and Per