AT&T to cut 12,000 jobs

AT&T Inc., the largest US phone company, joined the faltering US economyÔÇÖs procession of layoffs by announcing on Thursday its plan to cut 12,000 jobs in an effort to trim expenses. ┬á┬á The company plans to record $600 million in expenses for severance packages, with job cuts taking place in December and throughout 2009. The reductions will amount to nearly 4 percent of AT&TÔÇÖs workforce, and bring the companyÔÇÖs total job cuts this year to over 25,000, although it is unsure which departments and cities will suffer the cuts. ┬á The carrier commented that a good amount of its non-management employees have guaranteed jobs because of union contracts, and that all affected workers will receive severance ÔÇ£in accordance with management policies or union agreements.ÔÇØ┬á AT&T will still be hiring in 2009 in parts of the business that offer cell phone service and broadband internet as like most┬á telecom companies, it has been seeing many customers move from landline phones to wireless services. ┬á The Dallas-based telecommunications company, along with its smaller competitors, is struggling to keep its head above the water with slow consumer spending and an unemployment rate at its highest level in 14 years. ┬á AT&T also plans to reduce capital spending next year to cope with the economic downturn, and said it will give specific forecasts for 2009 spending in late January.