Mass layoffs to restructure debt will follow

What AT&T’s Layoff Announcement Says about Its Strategy

By Andrew Smith

6 hours ago

AT&T’s layoff announcement

In August, AT&T (T) announced a reduction in its workforce by closing its call center in Harrisburg, Pennsylvania. According to an August 28 report by The Guardian, AT&T has closed 44 call centers in the last seven years. The report added that more than 16,000 people in the United States have lost their jobs at AT&T since 2011, “as it continues to shut down call centers to consolidate facilities within the US, or in favor of offshore alternatives in countries such as India, the Philippines and Mexico.”

AT&T has continued to lay off employees and outsource jobs despite earning record profits and spending billions on stock buybacks. The company also received an anticipated windfall of $20.0 billion in savings from the Tax Cuts and Jobs Act of 2017.

First-half profit was $9.8 billion

AT&T reported a profit of $9.8 billion in the first half of the year. This profit implied a $4.7 billion profit in the first quarter, an ~34.4% increase from the first quarter of 2017. AT&T posted a $5.1 billion profit in the second quarter, an ~31.1% increase from the second quarter, het ready CWA durplus declaration is on effect for the SouthEast region September 15th.

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8 replies (most recent on top)

Which center(s)?

Layoffs have nothing to do with restructuring debt. Debt is restructured with creditors. So, the title seems pretty stupid.

As far as the call center is concerned, what I heard was, the building lease expired, so, AT&T brought in the work to other centers, and every employee in the closing call center was offered a job, albeit requiring relocation.

Not so brigh, the only thing corporations such as AT&T do right are the public relations campaigs, " I give them that", but no real subsrance with all these ghost hard to verify projects, yiu resd in rhe news, what we do know, with certifiable data AT&T has demonstrated that it’s committed to paying higher dividends despite high debt levels. In the second quarter, it paid total dividends of $3.1 billion, which is ~2.1% more than in the second quarter of 2017. Its quarterly dividend was equivalent to an annualized dividend of $2.00 per share and a dividend yield of ~6.3% on August 31. In comparison, Verizon (VZ) has a dividend yield of ~4.3%, from this data we can derive margin pressures, negative capital investment and layoffs.

I let it accumulate a little to offset the $75 transfer fee, but that is the only reason I wait. I do not consider it an investment choice.

"AT&T stock is not a part of my 401(K)."

It is unless you've move it out of your holdings each month. The company match to your contribution is in the form of AT&T shares.

AT&T stock is not a part of my 401(K).

Do you even understand how a 401(K) works, investments are decisions a person makes, not a decision AT&T makes.

Right everything is swell, lol

useless article, this person either dont know how to read an earnings report or is a liar either disqualifies him. here is the earnings report. his numbers are so wrong.

https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2018/2q-2018/master__2q18.pdf

its possible the company is not being truthful in what it releases. that is risky as under Dodd Franks, if the SEC holds CEOs accountable for incorrect ( and i use that term loosely) earning releases.

As for the "windfall" what does this id--t think the company will do with the money its not paying to the goverment? if it saves it its available to be lent, if it buys back its stock then people . who hold stock could see higher prices for their holdings (btw, wanna know one of the largest holdings of ATT stock? pension funds and drum roll, YOUR 401k).

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Mass layoffs to restructure debt will follow

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