AT&T to cut jobs

US TELECOM giant AT&T said last night that it will cut 2,500 jobs by the end of the year through voluntary departures and early retirements.

However, spokesman John Heath said: "These are not net reductions, we're creating other jobs in the cable, Internet and local phone divisions."

The job cuts were revealed by AT&T chairman Michael Armstrong at a shareholders' meeting. He said that the cuts - part of a campaign to reduce costs - would be concentrated in the network and long-distance division.