Reports estimate 600 AT&T workers were notified December 16th, a week before Christmas, they were being laid off by the company.
How can you lay people off and then give them $1,000 and say that there’s going to be more jobs available?
In a statement, AT&T stated most of the affected workers are from its landline and other legacy service business units. However, what was missing from statement of the telecom giant was just how many workers would still be employed in the new year.
The timing of the layoffs and bonuses may seem odd at first glance but they make absolute sense. That is, if you are an executive or shareholder of a billion-dollar company.
Recently, AT&T announced it was giving out $1,000 bonuses to 200,000 of its employees in celebration of the Republican Party’s tax reform bill. We now know some employees were not feeling the good vibrations.
This was not only good press for one of the nations largest wireless providers, but it also played well with the current White House administration, who AT&T hopes to have on their side as they try to move forward with closing the Time Warner acquisition deal. One, that many competitors, as well as business analysts claim allows the company to move towards a monopoly in the media space.
President Donald Trump praised the move by the company as an indicator of how the tax bill could benefit American workers.
As you may recall, in November, just last month, the Justice Department sued to prevent the $85.4 billion acquisition.
It is also worth noting the company will be able to deduct the bonus payouts when filing corporate taxes.
Do the math. What’s one-thousand dollars times two-hundred thousand employees?
$1,000.00 x 200,000 = $200 million!
That’s a very nice tax write-off indeed.
AT&T chief executive Randall Stephenson stated, ““Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world. This tax reform will drive economic growth and create good-paying jobs.”
Hmmm… I wonder if the soon to be 600 unemployed ex-employees would agree?
A recent report claims that AT&T recently laid off over 200 high-skilled technician jobs in the Southern and plans to lay-off around another 700 workers in Texas and Missouri beginning in 2018.
Last year AT&T publicly stated that “shrinking the [company’s] workforce by 30 percent is not out of the question.” Wow!
Let’s do the math kids. What is 200,000 minus 30 percent?
Answer. Catastrophic lay-offs. That would be around 140,000 people out of work.
Not all is a grim picture though. Shareholders of AT&T just saw their portfolios increase substantially. By the end of the fiscal calendar year, the forecast for overall company profits looks good.
As for the rest of us working-class folks, may 2018 be kind and gentle to us all.