According to a statement by the Communications Workers of America, a union representing AT&T workers, the wireless carrier AT&T is cutting 3,400 jobs and shutting down 250 stores over the next few weeks.
The cutbacks of AT&T Mobility and Cricket Wireless retail will affect 1,300 jobs while the remaining layoffs are said to affect technical and clerical employees.
Although the company said the store shutdowns had already been previously planned, the coronavirus crisis has reportedly forced it to bring these plans forward. The job cuts are part of its focus on growth areas and address some legacy products' lower customer demand, the company said.
In a statement, AT&T said the ongoing global health crisis and lockdowns to curb its spread have transformed customer behaviors. According to the company, with more customers buying online, "we're closing some retail shops to reflect our customers' shopping practices," Reuters reported.
The Dallas, Texas-based multinational conglomerate holding company pointed out that while these plans are not new, "they have been accelerated by the COVID-19 pandemic," Reuters said, adding that most workers will be offered an alternative role within the company as a result of the cutdowns.
AT&T had 244,000 workers as of March 31, so a 4,700 employee cut would represent a 2 percent decrease in its global headcount. The company would not confirm the employee cuts cited by the CWA.
But AT&T, which owns CNN, stated it estimates virtually all technical positions being cut to be carried out through voluntary buyouts. Some arrangements may pay almost $100,000. Any employees who lose their jobs will receive a separation pay from the employer where applicable, plus up to six months of health insurance.
The phone giant, who traces its roots back to Alexander Graham Bell in the 1800s, attempts to regroup around advanced communications services such as fifth-generation wireless technology. For its streaming platform HBO Max, it plows billions into entertainment content and marketing as well. Other areas will be pared back including its retail stores.
With over $160 billion in debt, AT&T has one of the non-financial company's highest debt loads, and has been under pressure to sell assets and slash costs.
The job cuts come in the midst of a change for AT&T and the wireless industry at large. In April, AT&T announced that Randall Stephenson would step down as chief executive officer and be replaced by John Stankey, the company's chairman and CEO, who will take over on July 1. Stephenson will continue to serve as the board's executive chairman until January.
