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AT&T to cut 12,000 jobs due to economic downturn

(Agencies)
Updated: 2008-12-04 23:03

NEW YORK – AT&T Inc. joined the recession's parade of layoffs Thursday by announcing plans to cut 12,000 jobs, about 4 percent of its work force.

In this Sept. 30, 2008 file photo provided by AT&T Inc., Randall Stephenson (C), president, chief executive officer and chairman of AT&T Inc., speaks to employees at AT&T's new broadband technical support call center in Goldsboro, N.C. [Agencies]

The Dallas-based telecommunications company — the nation's largest — said the job cuts will take place in December and throughout 2009.

It was not immediately clear what departments and cities would suffer the cuts. However, like most telecom companies, AT&T has been seeing many customers defect from landline phones to wireless services, and the company noted that it would still be hiring in 2009 in parts of the business that offer cell phone service and broadband Internet access.

The company also said it plans to reduce capital spending next year.

AT&T plans to take a charge of about $600 million in the fourth quarter to pay for severance costs. The company noted that many of its non-management employees have guaranteed jobs because of union contracts. All affected workers will receive severance "in accordance with management policies or union agreements," the company said.