AT&T plans 3,500 job cuts

AT&T will record a restructuring charge of around $240 million in the fourth quarter as it eliminates roughly 3,500 jobs, the company said Monday. The phone giant said about half of the "employee separations" will come from management. Most of the workers will leave the company in the first half of 2003. The charge should cut fourth-quarter earnings per share by about 20 cents, AT&T said.

The cuts will come primarily from AT&T's Business division, a company representative said. That division also includes AT&T Network and Labs. AT&T has around 72,000 employees worldwide.