AT&T's ax: Job cuts spin up to historical levels

Oct. 24, 2020 6:31 PM ETAT&T Inc. (T)VZ, VOD, TEF, TMUS, DTEGY, DTEGFBy: Jason Aycock, SA News Editor318 Comments
  • The latest quarter at AT&T also brought what looks like the most aggressive round of layoffs since its $85B embrace of Time Warner, part of a push to save $6B as it looks to slim down a swollen balance sheet.
  • Nearly 9,000 jobs appear to have vanished since last quarter - about 4% of the total - and that's before AT&T announced this month that thousands more jobs were coming out of WarnerMedia, which is looking to slash costs by 20%.
  • The two companies together had employed about 281,450 people in 2015, and the number at AT&T is now 234,630 - lighter by about 47,000 jobs, about 17% of the 2015 total - a cull that looks unprecedented for telecom, LightReading notes.
  • It's part of a plan to save about $6B by 2023, including cutting $1.5B from labor expenses. That would have meant about 10,000 total cuts if spread evenly, but the total already looks to go much higher.
  • At least for the just-reported quarter, operating expenses fell by $479M, just 1.3% of the total, while revenues slumped by 5% to $42.3B (still better than expected).
  • AT&T's not along among telecoms, LightReading points out. Verizon (NYSE:VZ) has cut nearly 43,000 jobs since 2015, it says, and even T-Mobile (NASDAQ:TMUS) appears to be laying off workers despite comments (during its hunt to merge with Sprint) that it expected to add roles to the combined company. Deutsche Telekom (OTCQX:DTEGY), Telefónica (NYSE:TEF) and Vodafone (NASDAQ:VOD) have cut thousands as well.
  • It's all coming amid a pandemic that is spurring many customers to shop online, giving the telecoms backing to initiate more store closures.

Recommended For You

Comments (318)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.