AT&T to Cut 12,000 Jobs, or 4% of Total Workforce

Authored by Mark Hefflinger on December 4, 2008 - 11:23am.

Dallas - Communications giant AT&T (NYSE: T) announced on Thursday that it will cut 12,000 jobs, or about 4% of its total workforce, citing "economic pressures, a changing business mix and amore streamlined organizational structure." The company also plans to reduce its 2009 capital expenditures from 2008 levels, but said further details will be announced in late January.

AT&T said that the layoffs, which will occur in December and throughout 2009, will result in a restructuring charge of about $600 million in the fourth quarter to pay severance to affected employees.

The company added that, while it is reducing jobs in some areas, it continues to add jobs in other parts of the business -- "such as wireless, video and broadband."