Printer Friendly

BELLSOUTH TO TAKE FOURTH QUARTER CHARGE FOR RESTRUCTURING TO IMPROVE CUSTOMER SERVICE AND EFFICIENCY

 ATLANTA, Nov. 10 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS) announced that the ongoing re-engineering and streamlining of its telephone operations will result in a fourth quarter restructuring charge of $1.2 billion, reducing BellSouth net income approximately $760 million, or $1.53 per share.
 The re-engineering is in progress at BellSouth Telecommunications (BST), the corporation's local exchange telecommunications provider and largest subsidiary. These initiatives will be completed by year-end 1996, and are designed to improve overall customer service and reduce costs.
 BST is dramatically changing the way it works with customers, redesigning its fundamental processes and streamlining systems for handling customer service. The company is upgrading software and equipment used in the customer service sector, and is developing new processes that will result in the consolidation of service centers and facilities.
 "We're changing the way we do business. We're speeding up our service efforts, investing in new systems, and just making it easier for our customers to deal with us," said John L. Clendenin, chairman and chief executive officer of BellSouth.
 "And we're doing it for one reason: to provide better service at more competitive prices for our customers," continued Clendenin. "The recent dramatic events in telecommunications -- mergers between long distance and cellular companies, and between cable and telephone companies, and BellSouth's own efforts to open up our switches and our network to competitors -- are already intensifying competition within the local telecommunications market, and this will be even more true in the future."
 Nearly half of BellSouth's charge ($550 million) is related to implementing new, state-of-the-art systems and $310 million will cover the costs of consolidating and eliminating certain operations, including training costs.
 The balance of the charge, approximately $380 million, is for employee separation and relocation costs. As part of the restructuring of basic work operations and processes, BellSouth will reduce its workforce by 10,200 by the end of 1996. This is an increase over the earlier-announced reduction of 8,000 jobs.
 BellSouth is an international telecommunications holding company. Its subsidiaries offer local telephone service in nine southeastern states and mobile communications services worldwide, including cellular, nationwide paging and mobile data, provide advertising and publishing services, and market and maintain stand-alone and fully integrated communications systems.
 -0- 11/10/93
 /CONTACT: Tim Klein, 404-249-4135, or Scott Ticer, 404-249-2824, both of BellSouth/
 (BLS)


CO: BellSouth Corporation ST: Georgia IN: TLS SU:

BN-RA -- AT011 -- 2855 11/10/93 15:02 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 10, 1993
Words:400
Previous Article:ALCO STANDARD CORPORATION ACQUIRES ARID IMAGE SYSTEMS, INC.
Next Article:MERRY LAND COMPLETES $100 MILLION OFFERING
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters