AT&T to cut 12,000 Jobs

"Pressured by the economic turmoil and the mounting loss of traditional phone customers, AT&T Inc. is cutting 12,000 jobs, about 4 percent of its work force.

The Dallas-based telecommunications company, the nation's largest, said the job cuts will begin this month and run throughout 2009. The company also plans to lower its capital spending next year, and one analyst estimates that reduction could be as much as $2 billion.

The 300,000-person company has announced layoffs several times over the past few years, including in April, when it said it would eliminate 4,600 jobs, but it has been hiring at the same time. This is the first time since the company bought BellSouth Corp. in 2006 that it said overall staffing would decline.

The new cuts were part of a parade of layoffs tied to the recession. In addition Thursday, chemicals company DuPont announced plans to lose 2,500 jobs, Credit Suisse Group slashed 5,300 and media conglomerate Viacom Inc. jettisoned 850. Yet AT&T, which provides local phone coverage in California, Texas and 20 other states, is also being pulled by another current: the long-term trend of people defecting from landline phones to wireless services or phone service from the cable company."

-(2008, Dec 4). AT&T to cut 12,000 jobs, 4 percent of staff (AP. Retrieved December 4, 2008, from cnn.com Web site: http://tech.yahoo.com/news/ap/20081205/ap_on_hi_te/at_t_jobs

Almost 4 % of jobs in this huge economy will have to be reduced. See what a big problem this is? Because we are in recession now, many people will get layed off from their jobs, not just at the AT&T but many other jobs. As time goes by, by like next year, even more people will be layed off. How will this affect us regular middle class people? Well, it will be hard living. My father might get layed off from American Airlines as a mechanic. That would be his second time. Hopefully he won't though. I doubt my mom would get layed off though since she is a nurse. I mean come on, you can't get rid of the people that try to help you stay alive. I'm hoping it doesn't turn into another great depression soon.