Cingular announces layoffs

Cingular Wireless today announced plans to reduce its workforce by about 3,000 positions. The carrier said the move reflected a major change in its sales structure.

“Our intent was aimed at better serving our customers,” said a Cingular spokeswoman. “The first department reorganization in the plans was our sales operations teams. We are shifting from a geographic focus to a channel-based focus.”

The carrier's sales organization now will be made up of three divisions: business to business, national retail operations and company retail stores.

Ken Hyers, wireless analyst with Instat/MRD called the shift to vertical sales channels "a pretty smart move," and said that other wireless carriers also are moving in this direction.

Cingular also said it would reduce the number of employees in other departments, including marketing, network, finance and human resources. Layoffs will be spread throughout the United States and Puerto Rico.

Hyers wasn't surprised by the announcement. He said a merger the size of the one that created Cingular -- which is a joint venture between BellSouth and SBC Communications -- would need about two years for synergies and redundancies to become clear.

“You’ve got operations spread out across the country. You’ve got networks spread out," he said. "It takes a considerable amount of time to integrate and upgrade systems and then consolidate into fewer locations rather than having them spread out across the country.”

Cingular has 36,000 full-time employees and another 4000 contract or temporary employees.