AT&T to cut 12,000 staff

AT&T joins the growing list of IT and telecoms firms to make job cuts

Telecoms giant AT&T announced on Thursday that it will cut roughly 12,000 employees from its ranks.

The reduction accounts for some four per cent of the company's staff, and could cost $600m (£407m) in severance expenses.

AT&T credited much of the decision to the worsening economy, although it did mention a narrowing company focus on areas such as wireless, video and broadband.

The cuts will begin in December, although AT&T expects the process to continue into 2009.

AT&T becomes the latest in a growing list of high-profile technology and telecoms firms to make job cuts. In recent months the downturn has led to thousands of layoffs at big names including Yahoo, HP, Nokia and Xerox.