RSSThe storm hits AT&T, with a five-digit headcount reduction
By Tim Conneally | Published December 4, 2008, 11:47 AM
This morning, the newly-demoted second-largest US phone carrier announced it's getting smaller still, shedding four percent of its workforce in another cost-saving operation for the economic recession.
The layoffs of some 12,000 employees will begin in December and continue throughout 2009, according to the company's statement this morning, however it was not specified which areas would be losing the most employees. AT&T noted that its wireless, video, and broadband sectors continue to add jobs, so wireline services will presumably be hit the hardest.
With landline services gradually fading into irrelevance, measures to scale back operations have been deliberate. This time last year, AT&T announced the total elimination of its payphone business, which involved the removal of some 65,000 public landlines during this year.
Around that time, AT&T laid out plans to reduce its workforce by 10,000 over the course of three years, and in April, it announced a further diminution by 4,600 jobs, mostly in the managerial sector.
The associated severance packages to terminated employees is expected to cost AT&T $600 million in the fourth quarter. Following that, the company plans to reduce its capital spending to pre-2008 levels.
I am starting to call BS on these lay offs. Everyone is jumping on the bandwagon because they know all they have to do now is say its part of the economic downtown. Problem solved.
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|ouch, all sectors are hit VERY HARD. What are all these people to do now?
Why isn't anyone talking about how low unemployment payments per state is.
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|meh
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|AT&T was (and maybe still is) a great company. But technology changes. The end result will be lower-cost, more efficient phone service. Everyone likes change, except when it adversely affects them. Good luck to the employees.
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|AT&T a great company.. Come on.. they are like the Gov. yes they have good product etc.. but I have to deal with them way to much and they are NOT fast at solving any issues.
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|AT&T is a cheap company that was nearly good.
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|i guess the best things for a recession is for companys to make huge job cuts!?!
this recession is going to get much much worst, before it gets any better.
I work for a major bank, and I have no idea when I will get the layoff notice... nobody does
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|Of course, otherwise they won't continue making their BILLIONS.
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|Att has raised our home and business phone rates just at a time when business was slowing down. No wonder they're losing business in their landline sector. They jacked our bills up by $25 per line in a one month period. We gave them the boot and haven't regretted it. I don't feel much sympathy for the corporation, though I do feel bad for the workers who will be let go. It seems like some of these workers could be retrained to work in other parts of the company. (sigh)
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