AT&T (T), the largest U.S. phone company, will lay off 12,000 employees, it said today. That’s about 4% of its workforce.
AT&T credits the cuts to “economic pressures, a changing business mix, and a more streamlined organizational structure.” The telco will take a $600 million charge in Q4 to pay severance, which is an average $50,000 per employee. AT&T notes that it’s still adding jobs in some areas of its business, such as wireless, video, and broadband, to meet demand.
AT&T also says it plans to reduce its 2009 capex below 2008 levels. That’s bad news for myriad equipment suppliers. We don’t know offhand who supplies AT&T with its network gear, but companies in that industry include Cisco (CSCO), Juniper (JNPR), Ericsson (ERIC), Nokia Siemens, etc.