Telecommunications provider AT&T announced that it would layoff about 12,000 people, or about four percent of its workforce, on December 4, 2008. The Dallas-based company blamed the economic downturn for the decision for the job cuts, which it said will take place in December 2008 and "throughout 2009."Official Site: AT&T Announces Job Reductions (December 4, 2008) CNNMoney.com: ...AT&T To Cut 12,000 Jobs, Or About 4% Of Work Force
Quotes
"While AT&T is reducing jobs in some areas, it continues to add jobs in other parts of the business—such as wireless, video and broadband—to meet customer demand."—Statement from AT&TOfficial Site: AT&T Announces Job Reductions (December 4, 2008)
"The layoff announced today is a harsh reminder that even the so-called defensive names aren't going to be immune to the effect of a recession. They are following a prudent course of trying to stay ahead of the economic pressures."—Craig Moffett, financial analyst at Sanford C. Bernstein & Co.Bloomberg.com: AT&T Plans to Reduce 12,000 Jobs...as Slump Deepens
References
Fast Facts
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Fact:
AT&T announced job cuts on December 4, 2008
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About 12,000 people will be laid off; amounts to roughly four percent of the company's workforceCNNMoney.com: ...AT&T To Cut 12,000 Jobs, Or About 4% Of Work Force
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Company says layoffs will lead to about $600 million in severance expenses for the fourth quarter of 2008Official Site: AT&T Announces Job Reductions (December 4, 2008)
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AT&T also plans to cut 2009 capital spending from 2008 levelsOfficial Site: AT&T Announces Job Reductions (December 4, 2008)
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Company said plans for capital expenditures were still being finalizedOfficial Site: AT&T Announces Job Reductions (December 4, 2008)
