its clear T is focused on its mobility and fiber assets with three pillars 1) simplify its portfolio by getting out of legacy businesses 2) improve EBITA on what is left to show strong operating and 3) change the way T sells its products to more of a channel/partner/wholesale model. This will change T into more of a channel focused org and less 'solution sales' requiring 1000s of sales people. already started to see quiet job cuts with some off payroll last week. Also expecting to see stores move to dealers. all the right moves to stay relevant long term, but it will be a long 18 months. at the end of the day i think Jeff and Jeremy can bring us back to number 1 but a board fight will need to take place to remove someone in the way.
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American firms have made clear - we are not going to be there to support you when times get tough.
In the US system, a company is not your family.
It’s not your friend, it’s not your confidant, buddy or pal.
It’s a Delaware C corporation with a profit motive and an earnings target. Never forget that.
Because if you’re able to help hit that earnings target, you’re welcome on board. But if you’re not - or your division, team, or business is not - you could be on the sidelines as early as tomorrow.
It’s cutthroat.
Spoke with someone recently in the fiber org. Understand our priorities change hourly so take it fwiw. Realize we have seen the big announcements on future fiber deployments but seems they are deadly serious about this conversion. Fiber everywhere and wireless connections if not economical to lay fiber. Might not come to fruition but that’s the word being passed down.
AT&T still pays severance???
Fiber and Mobility are priorities 2 and 3. Priority 1 is financial engineering of the $207B in debt and $40B in cash that we have on the books in a high interest rate environment. If we can land safely rolling over the corporate debt over the next two years we will be ok. If not, we probably will need to layoff more people to make up the shortfall in interest payments. It’s just math at some point.
Jeff and Jeremy are a couple of pillowbiters.
Get people off the books before year end will happen. How they do it remains to be seen
The majority of those employees that are to be let go as part of the new reorganization should all be off the books by the end of September. This move will affect the VP led Direct Team Sales Centers with a significant reduction coming from the non-sales admin positions, as well as a reduction in marketing & operations personnel, Directors, and Sales Managers roles are also to be consolidated.
OP is spot on, legacy services business units are already being dismantled. There will be some RIF and some severance packages offered. For Sales, the SAL-Strategic Account Lead-sales model is being revamped and the SAL headcount will be significantly lowered and those that remain their compensation will be 100% focused on TBR. The Direct Mobility Sellers/CSE role will see a reduction/consolidation and lower performers are already being managed out in order to be let go w/o a package. Mobility and Fiber will still lead the charge and compensation packages will be similar for both units.
OP…that’s a bullseye. AT&T will look like Cisco sooner than later, it just makes $$$ sense.
"I don't see many layoffs this year as the Stink does not want to pay severance to any of us grunt."
Pay now and streamline now and move on or let folks linger and pay later and delay any consolidation. Let us see what their wisdom decides.
Stink has been unusually quiet - which means he is cooking something up to increase the Toxicity of T to employees, customers and shareholders while enriching himself.
I don't see many layoffs this year as the Stink does not want to pay severance to any of us grunt. Because of the interest rate hikes, the IRS Segment Rates are going up, and that means certain pensions at Toxic T are going to go down - and in some cases significantly. Many people will retire before the end of November to avoid a great deal of the lump disappearing. This is the kind of free layoff that the Stink loves!