AT&T cutting jobs, but not in wireless

AT&T announced plans to reduce about 12,000 jobs--roughly 4 percent of its total workforce--but said it will continue to add jobs in some parts of its business, including wireless, video and broadband. Blaming the job cuts on economic pressures, a changing business mix and organizational restructuring, AT&T said the first wave of reductions will take place this month and continue throughout the year ahead, with the majority of job losses expected to originate in its local and long-distance segments. AT&T will take a charge of approximately $600 million in the fourth quarter of 2008 to pay severance to affected employees. AT&T also said it will lower 2009 capital expenditures from 2008 levels--the operator is presently finalizing its 2009 capital plans, and will provide specific guidance in late January, in tandem with its fourth quarter results.

The Associated Press reports new claims for U.S. worker unemployment benefits dipped slightly week-over-week to 509,000 while ongoing claims hit the 4.09 million mark, the highest level since the recession of the early 1980s. The federal government's latest monthly report on unemployment, scheduled for release Friday, is expected to post November job losses in excess of 300,000.

For more on the AT&T job cuts:
- read this release

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