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Cable World, Dec 2, 2002
Byline: K. C. NEEL, SHIRLEY BRADY AND MAVIS SCANLON
They knew it was coming since last December when Comcast Corp. announced it was buying AT&T Broadband.
Approximately 1,700 people will be laid off in the months ahead as Comcast closes down AT&T's Denver headquarters and moves operations to Philadelphia. About 675 workers got their walking papers in October and are expected to take their final leave before Christmas. Most of the higher-level executives - save the rare few who were offered a job with Comcast - left the building the day the deal closed. Regularly scheduled pink slips - giving either 30-, 60- or 90-day notices - will be distributed over the next few months as employees finish projects, transfer responsibilities and close up shop. The turnover is expected to be complete by May.
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This couldn't come at a worse time for folks in Denver, where unemployment hovers at 6%. Local economists say the region has lost almost 50,000 jobs the past two years as telecom and high-tech firms shuttered, reorganized and/or scaled back operations.
If people want to stay in the cable industry, they'll likely have to move, says Carlsen Resources president Ann Carlsen. Few cable-related companies are located in Denver anymore. A decade ago, there were no fewer than a half-dozen MSOs headquartered here.
The bulk of AT&T's corporate staff will receive up to two years' salary and benefits, say people familiar with the exit packages. Comcast says all impacted employees will be given severance, extended benefit coverage and outplacement support. Employees that are being let go admit that Comcast has treated them well.
"I'm not happy about losing my job," says one. "I've liked working here. But the severance will sure help as I look for something else."
Some will take time to assess what's next. Susan Marshall, SVP of advanced broadband services, packed her bags and moved to Steamboat Springs, Colo., where, she says, she'll take a year off. Others are more wary. "One side effect of the consolidation among MSOs is that a relatively large number of bright, forward-looking technical people are being pushed out of the broadband business," says an engineer. "That may eventually have fairly severe consequences on [MSOs'] ability to deliver new services."
Comcast isn't the only one letting people go. Adelphia handed out pink slips to 57 workers, or 4% of its work force, the week before Thanksgiving. On the flip side, Cox, Insight and Advance Newhouse, among others, are expanding payrolls. If people are willing to relocate, there are jobs, Carlsen notes.
And not all Denver-based Comcast employees will lose their jobs. Over 2,000 will remain with Comcast. Unaffected by the layoffs are employees working at the network operations center and a customer care center. Another 200 or so will handle various functions for the Rocky Mountain division now being formed. There are also another 2,000 field employees that aren't being affected. Some corporate executives have also accepted positions in Philadelphia. David Fellows, AT&T's chief technical officer, is one of them.
There are rumors that Adelphia's HQ might move to Denver. News reports have AT&T Broadband CEO Bill Schleyer and COO Ron Cooper taking over the MSO and moving it out of Coudersport, Pa.
"It would be exciting if they came," says one AT&T staffer.
Some, of course, will opt to leave the cable business altogether. Cynthia Eichner, who had been in charge of AT&T's internal communications department, was one of more than 500 people laid off in March. A 20-year cable veteran, she opted to take a job at Amazon.com in Seattle. "You don't have to get stuck thinking that cable is the only industry to work in," Eichner says. "Don't get me wrong. I loved working in the cable industry. But there is more to life than cable."
For those who do want to stay in the business, Cable World has rounded up the resumes of several Broadband folks hoping to find work. Here's a sampling of some of the talent hitting the streets in the next few months.
MARIA G. ARIAS
VP of law, local government affairs
GOAL: Law or government affairs position.
EDUCATION: J.D. (1986), Northwestern University School of Law; B.A. (1983) political science, DePaul University
CAREER: As VP-local government affairs, managed a 100-plus team at AT&T Broadband spanning 14 markets. Responsibilities included all local franchise relationships; successfully managed over 1,000 local franchise merger approval agreements in the merger. Significant experience handling litigation and regulatory proceedings; managed AT&T's law and public policy teams. Additional legal experience includes diversified civil litigation experience including bankruptcy, consumer fraud, employee benefits, product liability and federal warranty law litigation.
CONTACT: 303-618-2162; Lupearias@msn.com
ROBERT G. BEER
Data mapper on ACSR/T to ICOMS billing conversion
GOAL: Prefers data analysis and conversion position; strong on billing conversion. Will relocate.
EDUCATION: Business administration, Denver U.
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