In a economy officially drowning in recession, this news comes as no surprise. AT&T Inc. has joined the recent tidal-wave of layoffs around the US (and indeed the world) by announcing plans to cut 12,000 jobs (4% of its workforce). The cuts will start taking place this month, and will continue throughout 2009. No good. The move will force the company to pay out roughly $600 million in Q4 for severance. You know when a company wants to pay out $600 million in severance as the best option… that things aren’t all that great.
The cuts are attributed to ‘economic pressures, a changing business mix and a more streamlined organizational structure.’ It’s the economy AT&T. We get it.
So far, no specific details on what departments/divisions will take the brunt of the blow, but the latest rumor has it that the landline division will get hit hard.
Unfortunately this isn’t the last we’ll hear of news like this. Tighten your belts and get ready for more news like this to close out 2008 and to begin 2009. I’m as optimistic as anyone, but I think this downturn is going to take more than a few months to shuffle itself out.
[Via: Yahoo! News]