AT&T to cut 12,000 jobs, wireless not impacted

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.