Mobiles (and Skype) force AT&T to layoff 12,000

AT&T blames the 4% layoff on landline loss. Four percent is no big deal for a 300,000 person company; it's just moving people from its landline business to its other operations. This follows 20% of US consumers who left landlines to mobiles.

At least one state government is trying to stop AT&T's layoffs. Connecticut's attorney general is suing to block "AT&T from laying off about 400 employees in the state, charging that the job cuts will further weaken the company’s already dismal service performance."

AT&T will also conserve cash by putting off upgrades to its infrastructure and systems. This could be bad timing as massive copper theft threatens US telephony, internet, and electricity systems.

Om Malik sees this hunkering down as a trend. This is already starving carrier suppliers, as those who used to sell their products at the now-defunct VON trade show know well. 

Personally, I think this is a political gambit. AT&T is getting set to play D.C. hardball when it comes to Obama administration FCC and FTC regulation, Department of Justice antitrust issues, and congressional bailouts.

tags: skype, attention, at&t, att, layoffs, economy, apocalypt08, business

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