Landline Losses Spark New AT&T Layoffs

AT&T plans to layoff 12,000 workers (about 4 percent of its total staff), perhaps spurred by continuing landline defections. The layoffs will begin almost immediately and will continue throughout 2009. AT&T says it will take a charge of approximately $600 million in the fourth quarter to pay severance to affected employees. It also notes that some of its employees "have a guaranteed job offer under union contracts," but it didn't detail the implications of that contract provision. The nation's largest telco didn't say exactly from where the new cuts will come. As to why, it cited "economic pressures, a changing business mix and a more streamlined organizational structure," adding "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." In addition to cutting jobs, AT&T plans to reduce 2009 capital expenditures from 2008 levels.