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Communicating a Difficult Message: AT&T's Restructuring and Downsizing (C)
Powell, Elizabeth A.; Cockburn, Robert E.; Revoy, Jeffrey Case BC-0132 / Published January 24, 2002
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Product Overview

This series of cases concerns the public fallout following AT&T's downsizing announcements, one in 1995 cutting 8,500 jobs as part of its trivestiture, and the other in 1996 when 40,000 additional jobs were to be cut over the next three years. The series can be used for MBA and executive audiences to examine issues related to massive job cuts and the reactions of multiple constituencies. The cases also illustrate how a company can become a symbol for a perceived social injustice, in this case the apparent gap between layoffs and CEO compensation. The C case opens with a call from 60 Minutes, requesting an interview with AT&T CEO Bob Allen about his multimillion dollar compensation package in light of massive layoffs. Director of Public Relations Adele Ambrose must sort through her options and evaluate how she might help the company restore its public image, improve employee morale, and safeguard Allen's reputation.




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  • Overview

    This series of cases concerns the public fallout following AT&T's downsizing announcements, one in 1995 cutting 8,500 jobs as part of its trivestiture, and the other in 1996 when 40,000 additional jobs were to be cut over the next three years. The series can be used for MBA and executive audiences to examine issues related to massive job cuts and the reactions of multiple constituencies. The cases also illustrate how a company can become a symbol for a perceived social injustice, in this case the apparent gap between layoffs and CEO compensation. The C case opens with a call from 60 Minutes, requesting an interview with AT&T CEO Bob Allen about his multimillion dollar compensation package in light of massive layoffs. Director of Public Relations Adele Ambrose must sort through her options and evaluate how she might help the company restore its public image, improve employee morale, and safeguard Allen's reputation.

  • Learning Objectives