G.O.O.D

Source: Indiainfoline.com

Associated with these job reductions which will occur in December and throughout 2009, AT&T will take a charge of approximately US$600mn in the fourth quarter

AT&T Inc. on Thursday announced a planned reduction of about 12,000 jobs, or about 4% of the company’s total workforce, citing economic pressures, a changing business mix and a more streamlined organizational structure.

In response to these business and economic factors, AT&T plans to reduce its 2009 capital expenditures from 2008 levels. Capital plans for 2009 are being finalized now and specific guidance will be provided when the company releases its fourth quarter results in late January.

Associated with these job reductions which will occur in December and throughout 2009, AT&T will take a charge of approximately US$600mn in the fourth quarter of 2008 to pay severance to affected employees.

While AT&T is reducing jobs in some areas, it continues to add jobs in other parts of the business - such as wireless, video and broadband - to meet customer demand.

Many non-management employees affected by these reductions have a guaranteed job offer under union contracts. All employees will receive severance in accordance with management policies or union agreements.

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Technorati Tags: AT&T, unemployment

Source: Bloomberg.com: Worldwide

Worst Since WWII

The International Monetary Fund predicts advanced economies including the U.S. and 15-nation euro area will contract simultaneously next year for the first time since World War II, with Germany’s forecast to shrink 0.8 percent.

The economy fell into the worst recession in at least 12 years in the third quarter and the country’s benchmark DAX index has tumbled almost 50 percent this year. In the euro region, manufacturing and service industries contracted at the fastest pace in at least a decade this month.

“Europe is Germany’s biggest export market, so if those economies tank we’re in real trouble,” said Andreas Scheuerle, an economist at Dekabank in Frankfurt.

“I believe hardly anyone has ever before seen such a slump in demand,” BASF Chief Executive Officer Juergen Hambrecht told Bloomberg Television on Nov. 19. “We’re bracing for a somewhat tougher year in 2009.”

BASF lowered its profit forecast for a second time and said it will halt or curtail production at plants in Germany, Belgium, the U.S. and China, forcing about 20,000 employees, or one-fifth of its workforce, to work shorter hours and take unused vacation.

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Technorati Tags: German Business Confidence