* Cutting 4 percent of workforce* Taking a $600 million severance charge
* Shares down 2.5 percent
* Viacom, Adobe also cutting staff
Top U.S. phone company AT&T Inc said it will eliminate 12,000 jobs, or about 4 percent of its workforce, in a fresh wave of cuts to cope with an economic downturn that has exacerbated a decline in traditional phone sales.
Joining a raft of companies slashing costs to survive a slump in spending, AT&T said on Thursday it will cut the jobs over the remainder of 2008 and 2009, and take a charge of about $600 million in this year's fourth quarter for severance.
The carrier also plans to cut its 2009 capital spending from this year's levels, though spending plans have not been finalized. AT&T said it would provide details in late January.
The cuts come as phone companies struggle with declining land line sales, as more consumers switch to wireless or alternative, cheaper services offered by cable and Internet companies. AT&T cited "economic pressures, a changing business mix and a more streamlined organizational structure".
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