Wednesday, December 3, 2008

AT&T Announces 12,000 Job Cuts

Citing economic pressures, a changing business mix and the need for a more streamlined organizational structure, AT&T announced a planned reduction of approximately 12,000 jobs, or about 4 percent of the company's total workforce. The job cuts will occur in December and throughout 2009. The company will take a charge of approximately $600 million in the fourth quarter of 2008 to pay severance to affected employees.

AT&T will also cut its 2009 capital expenditures from 2008 levels. Capital plans for 2009 are being finalized now and specific guidance will be provided when the company releases its fourth quarter results in late January.

AT&T noted that it continues to add jobs in other parts of the business -- such as wireless, video and broadband -- to meet customer demand.