AT&T Broadband outlines 1,700 cuts

Susan Rush
From the October 9th edition of CED Broadband Direct

With its pending merger with Comcast Corp. inching closer to approval, AT&T Broadband has revealed plans to cut 1,700 positions.

Once the merger is approved, 675 positions will be eliminated, with the remaining 1,025 jobs to be cut during a post-merger transition period of 6 to 9 months. The majority of the affected employees currently hold executive and management positions.

Employees that receive their walking papers will receive generous severance packages -- from four months to a year -- and extended paid healthcare coverage of up to 18 months, according to a source familiar to the matter.

AT&T Broadband points out that 70 percent of its 4,000 Denver-based employees will stay on after the merger. Of the 4,000 employees, 2,000 serve the local operations in Denver.

After the merger closes, Comcast's mountain division will be located in Denver. Brad Dusto will head the division.

The job cuts should come as no surprise; it has been no secret that the merged company's headquarters would be in Philadelphia. The merger is expected to close in the fourth quarter.