AT&T is joining a long list of companies slashing costs to cope with the economic downturn, with an announcement today that it would axe 12,000 positions, or roughly 4 percent of its workforce. Not only is the recession to blame for the move, though, but also a "changing business mix" that has left its traditional landline service in decline.
But while 12,000 employees of the company are on the chopping block, the company said it plans to add jobs in areas that are growing, such as its cellular division as well as its Internet access and video services. Cuts are expected to begin this month and move into next year, according to the company.
AT&T is certainly not the company in the technology sector (or elsewhere for that matter) that has had to lay off workers recently. Viacom also announced today that it will cut its workforce by seven percent, or 850 jobs, while Adobe Systems announced on Wednesday it will let go eight percent of its employees, or around 600 people.