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Pacific Telesis Announces More Cutbacks

October 1, 1991

SAN FRANC (AP) _ Pacific Telesis on Tuesday announced a round of early retirement incentives to help it meet a goal of cutting 11,000 jobs by 1995.

The company also said it is ending its employment security plan for managers in April 1992. PacTel said it will begin laying off managers in April ″if it is necessary to adjust the (work) force.″

″The company might need to lay off in the future. The company needs to be more free ... to do what it needs to do to reach the force level that it needs,″ said spokeswoman Jill Foley.

The voluntary severance and pension enhancement plans are aimed at the 18,400 managers at PacTel, Pacific Bell, and Pacific Bell Directory. About 3,000 managers, or 17 percent, are expected to take advantage of buyouts.

Pacific Telesis is the sixth regional Bell company since May to announce incentives aimed at reducing the number of managers. The others are BellSouth Corp., Bell Atlantic Corp., Nynex Corp., Ameritech Corp. and Southwestern Bell Corp.

U S West Inc., the seventh of the Baby Bells, offered an early retirement plan in 1989.

This is the second round of early retirement incentives at Pacific Telesis since 1990. About 3,100 people have left PacTel and PacBell, the holding company’s largest subsidiary, since then.

″Reducing staff is never easy or pleasant. But we believe our incentive programs are fair, and hope they will help our employees make decisions about their future with the company,″ said Sam Ginn, chairman and chief executive officer of PacTel.

The voluntary severance plan provides a one-time payment for managers leaving the business and will be offered through November.

For the month of December, the company will offer a permanent minimum pension enhancement with additional incentives for eligible managers.

″As we said in 1990, our industry is increasingly dynamic, and our staffing requirements will reflect that. We need to demonstrate that we can move quickly, flexibly in response to changing conditions,″ Ginn said.

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