NEW YORK -- AT&T Inc said Friday it would cut its work force by 1.5 percent, or 4,600 jobs, primarily affecting management-level employees, resulting in a first-quarter pre-tax charge of $374 million.

The biggest U.S. telecommunications provider, which has about 310,000 employees, said in a regulatory filing that its head count would remain stable in 2008 as it hires more workers to support growth areas.

AT&T said the job cuts — affecting its wireline telephone business in the United States and around the world in mostly "non-customer-facing areas" — are part of its efforts to streamline the company.

The job cuts come as it faces declining traditional phone sales and rising costs for deploying new, high-speed Internet and video services.

AT&T shares were up 50 cents, or 1 percent, to $38.07 in morning trade on New York Stock Exchange after the news.

Story Continues Below

AT&T Spokesman Walt Sharp said the company was in the process of notifying employees affected by the job cuts.

Last month, smaller telecom provider Qwest Communications International Inc said it was cutting jobs by offering a "voluntary separation program" to less than 2 percent of its workers, or less than about 740 workers. Qwest cited a decline in phone lines.

AT&T, which posted a 2007 fourth-quarter profit of $3.1 billion, has made several acquisitions in recent years, including SBC Communications and BellSouth.

© Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Editor's note:
The Recession's Silver Lining. What it Means for Investors.
Investors now urged to avoid the Euro. Find out why.
Why the Dollar May Have Hit Bottom. New Actions to Take Now.
Capture 10% to 15% Dividend Income Every Month
Aging World Sets Stage For Healthy Profits