Page last updated at 14:13 GMT, Thursday, 4 December 2008

Telecom giant AT&T slashes jobs

AT&T
AT&T said job cuts are needed to streamline current operations

The US telecommunications company, AT&T, has announced 12,000 job cuts, or 4% of its workforce, in an effort to significantly reduce costs.

The Texas-based firm cited economic pressures, a changing business environment and the need for a more efficient organisational structure.

AT&T said the staff cuts would start in December and would continue throughout 2009.

It also forecast a reduction in capital expenditures next year.

In a statement, AT&T added that, despite the cuts, it would continue to create jobs in other parts of the business, such as wireless, video and broadband.

AT&T said it had earmarked $600m (410m) in the fourth quarter of 2008 to make redundancy payments to employees affected.

The firm provides telephone services and internet access to more than 70 million customers in the US.

In 2006, it acquired rival BellSouth in a $67bn takeover.

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