AT&T Hacks 12,000 Jobs

AT&T is cutting 12,000 jobs, or 4% of its workforce, mostly in the landline segment that has lost market share to cell phones, cable operators, and Internet calling options, reports the AP. AT&T, which has cut more than 25,000 jobs so far this year, said it will begin the new cuts this month and book a $600 million severance writedown in the fourth quarter.

AT&T will continue to add jobs in its mobile, video and Internet units, which are becoming profit centers for traditional telecoms, reports MarketWatch. But the company also said it plans to reduce spending in new equipment in 2009. (More AT&T stories.)