AT&T Cutting 12,000 Jobs - Four percent of their work force…

Confirming what many managers were privately worried about back in October, AT&T today announced that the telco will be eliminating 12,000 jobs, or about four percent of the telcom giant’s work force. According to an AT&T statement, the layoffs are a result of economic pressures, a changing business mix, and a more streamlined organizational structure. That’s code for the economy sucks, the credit market sucks, their landline business is dying, new DSL subscriber additions are dismal, and they continue to purge redundant positions created by the BellSouth merger.

According to the telco, they’ll be reducing their 2009 capital expenditure levels:

Whether that slows the deployment speed for U-Verse remains to be seen. AT&T announced 4,500 job cuts back in April as well, many related to their dying landline business. The telco insists they continue to add jobs in their wireless and video business units.

In their statement, AT&T notes that many non-management employees affected by these reductions have a guaranteed job offer under union contracts, while all employees will receive severance “in accordance with management policies or union agreements.”
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