AT&T to Cut Thousands of Jobs and Close Stores

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AT&T is making some big moves soon. The company has told its main labor union, the Communication Workers of America, that it will be slashing over 3,400 technician and clerical jobs across the nation over the next few weeks.

The telecom giant also said it would be permanently closing over 250 stores. This will affect about 1,300 retail jobs according to the union.

In a statement, AT&T cited that the coronavirus pandemic and subsequent lockdowns have changed consumer behaviors.

“With more customers shopping online, we are closing some retail stores to reflect our customers’ shopping practices,” AT&T said. “While these plans are not new, they have been accelerated by the COVID-19 pandemic.”

There will be targeted, but sizable reductions in our workforce across executives, managers and union-represented employees,” AT&T said in a statement.

“Reducing our workforce is a difficult decision that we don’t take lightly,” AT&T statement said. The company is offering landline technicians voluntary buyout packages.

AT&T has assured however that most employees will be offered an alternative position within the company.
Executives, managers and union-represented employees will be affected along with non-payroll workers outside of the United States, AT&T said. The company is additionally offering severance pay and health care for laid-off employees for the rest of the year.

“If we are in a war to keep our economy going during this crisis, why is AT&T dismissing the troops?” Communications Workers of America President Chris Shelton said. “AT&T could help lead the country toward recovery by partnering with its workforce to build next generation networks. Instead the company is adding to the pain of the recession already underway.”

Disclaimer: We have no position in AT&T Inc. (NYSE: T) and have not been compensated for this article.

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