If activist shareholder Elliott Management Corp. has its way, more than 30,000 AT&T Inc. workers could lose their jobs or face reductions in wages, according to a new estimate from the Communications Workers of America union.
https://www.dallasnews.com/business/local-companies/2019/10/16/union-30000-att-workers-could-lose-jobs-or-pay-under-activists-plan/
Management surplus is a fact of life. Learn a skill to prepare for the inevitable.
That is more CWA scare propaganda. Layoffs will come with or without Elliott Mgmt involved. Assets were being sold anyway without Elliott Mgmt. It would be profitable to spin off outdated landline to a new controlled entity . Stankey was asked the head that up a few years back and nothing happened other than him saying we should keep that base to sell other products too. Stankey is an id–t
I think Randall once said that wireline was profitable.
There are two bigger dogs then Elliot already in AT&T, and those are Blackrock and Vanguard. I believe they need that dividend for their own dividend funds. Unless these entities are buying what Elliot is selling, I'm not so sure much action will take place.
But one thing is for sure. No shareholder wants AT&T to be a charity. If there are money-losing activities going on (and landline telephony might be one of them) then AT&T needs to get rid of it. But, the "2020" plan is designed to do that, and 2020 is not that far away. Of course it could be the end of 2020.
I think robust rural 5G services will be the death-knell of landline telephony and AT&T will be able to mothball it.
I think the estimate is shy. The entry of elliot management “activists investor” into the ATT game was not by chance. It was well planned. Where the are problems, nothing stays the same way for ever. And it also made a very good excuse for the things to come. Rapid outsourcing of entire division, hot sales of assets, etc etc. Brace your self, rough ride ahead!! PD: Randy and the gang don’t wanna go anywhere.....
They're already marked be be canned anyway. The problem is that Elliot would do it much quicker.
"The landline business is supported by about 11,000 people whose jobs may be at risk and who work in rural areas in 26 states, the CWA estimated."
Elliot says dump rural landline. If it's not making money, AT&T should do exactly that, if they can. They don't break out their earnings sufficiently to see if landline is making money, especially rural landline. Verizon dumped much rural landline, and they're not looking backwards.
Elliot only cares about the short term bottom line so they can sell and make money. They’re part of the problem.
Wow must be nice where you live.
People that buy and sell companies no matter what size they are don’t care about who gets cut from the workforce with the exception of the C-level people that make headlines. Everyone else is just an expense on a spreadsheet.
Believe Singer said nothing about cutting front line employees ...it was more about the cumbersome multi levels of management . Strong leadership from the Union should safe guard the membership. Time for Union leadership to act like UAW and proudly represent thier workers instead of the cowardly statement " you are lucky to have a job"