A broad range of companies said Thursday they will be handing out pink slips in a bid to cut costs amid growing economic headwinds.
AT&T(T) slashed 12,000 jobs -- or 4% of its global work force. The largest telecommunications provider in the U.S. will have to take a $600 million charge on fourth quarter earnings to pay severance costs, according to a release. Still, the company says it will continue hiring in its high growth areas, such as broadband internet access and cellular phones. Shares of AT&T recently ticked lower by roughly 0.10% and are off 24% for the year.
Switzerland's second largest bank, Credit Suisse (CS) cut 5,300 investment banking jobs -- representing 11% of its work force. The company estimates these reductions will substantially lower costs. Credit Suisse has now laid off 7,390 workers.
The beleaguered bank also said it expects the value of its risk-weighted assets to decline by 43% for the year ended 2008 as compared with the previous year.
Shares of the bank were recently higher by about 5%, but are lower by 59% for the year.
DuPont (DD) substantially cut its earnings projections and said it would trim its work force in an attempt to strengthen competitiveness and increase cash flow amid economic pressures.
The Deleware-based company says it now expects to lose between 60 cents and 70 cents per share in the fourth quarter, analysts were expecting gains of 23 cents for the quarter. The chemical maker also expects its fourth-quarter sales to be 15% less than that of the previous year.
"We have taken immediate and aggressive actions to maximize cash flow by reducing cost, working capital and capital expenditures in response to current market challenges," said DuPont Chairman and CEO Charles O. Holliday, Jr.
In addition to cutting back its earnings forecast, the company says it will shed 2,500 jobs and 4,000 contractors in an attempt to decrease costs. Taken together with other cost cutting measures, the company hopes to achieve $600 million in fixed cost productivity improvements in 2009.
Shares of DuPont were recently lower by roughly 1%.
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