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Hernando Today

AT&T Layoffs Due To Slumping Land Line Business

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By TONY HOLT

Hernando Today

Published: December 8, 2008

ORLANDO - The emergence and technological advances of the cell phone industry has caused people to desert landline phones for years.

On Thursday, AT&T announced it would lay off 12,000 employees, or 4 percent of its workforce. Many of those lost jobs will be on the basic telephone side of the business, according to the Associated Press.

The shift from home phones to mobile and digital phones has only increased due to the economy. More jobs are being added in other areas of the company, said AT&T spokeswoman Gretchen Schultz.

"While we're reducing in some areas, we continue to add jobs in other parts of the business, such as wireless, audio and broadband, to meet customer demand," she said.

AT&T employs more than 303,000 employees worldwide. Florida has one of its largest workforces with 20,000 employees.

It is not known how many of the layoffs will affect statewide employees. The job cutbacks will begin this month and will run through 2009.

The company benefits from its partnership with Apple, as well as its sale of the BlackBerry Bold. Both the Bold and the iPhone 3G are expected to be hot items during the Christmas shopping season.

"AT&T has some of the most demanded phones by customers," Schultz said. "As everyone continues to be more mobile, cell phones seem to be more of a necessity than a luxury."

It has been a tough week for landline providers.

It was announced Thursday that Florida state regulators are looking to fine Verizon several million dollars for alleged lapses in its telephone service quality.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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