AT&T announced on Dec. 4 it was cutting 12,000 jobs and slashing capital spending due to an economic downturn. The Dallas, Texas-based company said the "planned reduction of approximately 12,000 jobs, or about four percent of the companys total workforce" would occur in December and throughout next year.
The job cuts stemmed from "economic pressures, a changing business mix and a more streamlined organizational structure," it said.
AT&T also wants to cut its 2009 capital expenditures, with details to be provided in late January when the company releases its fourth-quarter results.
The company said $600 million in severance pay would be given to affected employees.
Despite the bleak economic environment, AT&T said it would expand lucrative aspects of its operations. "While AT&T is reducing jobs in some areas, it continues to add jobs in other parts of the business -- such as wireless, video and broadband -- to meet customer demand," it said.
Copyright Agence France-Presse, 2008