AT&T to Layoff 12,000, Plans Capex Cutback

AT&T Inc. (T) today announced what it termed “a planned reduction” of approximately 12,000 jobs and a 2009 capex cutback, citing economic pressures, a changing business mix and a more streamlined organizational structure.

The cuts represent 4 percent of its global workforce. AT&T also plans to reduce its 2009 capital expenditures from 2008 levels. Its 2009 capital plans are being finalized now. AT&T said specific guidance will be provided when it releases its fourth quarter results in late January.

The telco did not provide in detail what areas would be affected by the capex cutbacks, nor did it specify what areas the layoffs would come from.

The job reductions will take effect this month and throughout next year. The company claims it will cost approximately $600 million in the fourth quarter of 2008 to pay severance to the affected employees.

The carrier says it continues to add jobs in areas including wireless video and broadband in order to meet customer demand.

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