Shortly after the release of HBO Max, AT&T announces even more job cuts.
Telecommunications giant AT&T plans to announce nearly 5,000 jobs cuts in the next few weeks as well as plans to close 250 stores across the country. Roughly 70% of the jobs that will be affected include technician and clerical positions, while the remaining are the retail workers that face store closure. This comes after AT&T already cut 41,000 jobs according to their most recent quarterly report, citing economic impact from COVID-19 as the driving reason.
Communications Workers of America (CWA), the union representing many of the affected employees, voiced its concerns with President Chris Shelton stating, "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".
In AT&T's June 17th shareholder update, CFO John Stephens defends the job cuts, describing them as, "Cost savings allowing it [AT&T] to maintain its commitment to paying a dividend to shareholders, invest in key growth areas of the business — 5G, fiber and HBO Max — and reduce debt". The company won't be leaving its former employees with nothing, however, as according to Forbes, “severance incentives [include] up to nearly $100,000 and company-provided healthcare for six months".