AT&T is cutting 12,000 jobs or 4 percent of its workforce, tightening its belt because of the depressed economy. AT&T said the cuts would take place in December and throughout 2009. The company will take a $600 million charge in Q4 to cover severance costs. AT&T is also cutting back next year's capital expenditures, citing "a changing business mix" as part of the reason behind the cuts.

Also today, RealNetworks cut 7.5 percent of its workforce, slashing 130 of 1,800 total employees. The layoffs were spread amongst the company's departments and regional offices.

Photo caption and credit: In this Sept. 30, 2008 file photo provided by AT&T Inc., Randall Stephenson, president, chief executive officer and chairman of AT&T Inc., speaks to employees at AT&T's new broadband technical support call center in Goldsboro, N.C. AT&T said Thursday, Dec. 4, 2008, it is cutting 12,000 jobs, or about 4 percent of its work force, because of the economic downturn. (AP Photo/AT&T Inc., Jim R. Bounds, File)