AT&T to cut 12,000 jobs, wireless not impacted
December 4 2008 - 12:50 pm ET | Allie Winter | RCR Wireless News
Citing ongoing economic concerns AT&T Inc. announced in an 8-K filing that it will cut 12,000 jobs, or roughly 4% of the company’s total workforce. The cuts will begin this month and continue throughout next year and will cost the telecom giant $600 million in severance payments to the affected employees.
AT&T said the decision was due to economic pressure, a changing business mix and a more streamlined organizational structure. The company also said it plans to reduce 2009 capital expenditures from previous levels. AT&T said more details will be provided when the company releases 2008 fourth quarter results in late January.
However, the job cuts will not come from the company’s wireless division. In fact, AT&T said it will continue to add staff in other business areas including wireless, video and broadband.
The rough economy has caused other wireless companies to lay off workers. Virgin Mobile USA Inc. announced it will lay off 10% of its workforce, eliminating 45 positions. Further, wireless location-based-services company AirIQ Inc. will cut 36% of its workforce in order to save $1 million annually.
December 8, 2008 04:19 pm
C'mon AT&T! This is the best you can do? I don't see Verizon or T-mobile laying anyone off. I thought wireless was still doing well. Maybe you need to take a look at your top management first, and lay off from the top down. You would save more money with less bodies lost, and maybe even get some good leadership for a change.
December 8, 2008 04:19 pm
BOO on AT&T! 12,000 people out of work is a lot. They are not CURRENTLY laying off in the wireless division, they have with any excuse they could find in the past, like all of their silly mergers & acquisitions. Just like all of the people that lost their jobs with the formation of the new Cingular, and again with the new AT&T. Definitely NOT a company I want to do business with or work for.
December 4, 2008 12:53 pm
DRC: Actually hiring in Wireless Division as expected . . . Looks like the Union blocks will take anohter hit, just as they did in Detrpoit . . . Good to see yuou, I look fwd to getting together wih you guys . . . be well.