AT&T cuts 12,000 jobs

Reuters
Posted: Friday, Dec 05, 2008 at 0930 hrs IST
Updated: Friday, Dec 05, 2008 at 0930 hrs IST

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Barclays to raise workforce by 10% in Asia US productivity surges Nokia Siemens Networks may cut 5,760 jobs

New York: said it would take advantage of a government scheme to cut working hours, while Japanese media reported that Canon Inc is planning to lay off more than 1,000 contract workers.

One of AT&T's problems is a decline in sales of traditional phones. Its third-quarter results showed wireline voice revenue fell more than 8 per cent from a year earlier.

Shares of AT&T have dropped by about 30 per cent so far this year, amid questions on whether the company would be able to make up for the rapid decline in traditional wireline customers.

AT&T has been trying to maintain land line users by investing in new, high-speed Internet and video services, and analysts have said this has yet to yield significant returns despite the high costs.

While its partnership with Apple Inc's iPhone has helped it win wireless customers, AT&T's subsidies to buyers in exchange for subscriptions has hurt profit margins.

Verizon Communications Inc is seen having similar problems to AT&T, although it said on Thursday that it had nothing new to announce.

Shares of network equipment makers, or suppliers to phone companies like AT&T, were down on Thursday afternoon. Cisco Systems Inc fell 3.0 per cent to $15.53, Juniper Networks Inc fell 4.9 per cent to $15.86, while ADC Telecom fell 12.5 per cent to $6.00....

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