AT&T announces 12,000 job cuts on rising fixed line losses

5 Dec 2008

US carrier AT&T yesterday announced plans to cut its workforce by around 4%, or 12,000, and cut spending on new equipment, becoming the latest telecoms operator to feel the pinch of the global economic downturn. The Associated Press reports that AT&T will pare down its current workforce of 303,500 during 2009 as it struggles to contend with a drop in revenues at its traditional fixed line services division. Like many other operators AT&T is facing increased fixed to mobile substitution and although it has offset the revenue drop from traditional voice call services by promoting new products such as broadband, TV and wireless, it is becoming evident the recession is now starting to hit even these fast-growing businesses. AT&T plans take a charge of about USD600 million in 4Q08 related to redundancy costs and in addition, will trim its CAPEX targets for 2009, although it stopped short of specifying an amount.

United States, AT&T