AT&T To Lay Off Thousands While Giving Its Departing CEO $274,000 A Month For Life

It’s a great time to be a CEO at AT&T – and a terrible time to be an employee. Filings reveal that AT&T will pay its CEO $247,000 a month for life after he leaves at the end of this month. At the same time, the company has announced thousands of layoffs.

CNBC reports:

“Dallas-based AT&T plans to make “sizable” job cuts and close hundreds of retail stores as part of a plan to slice $6 billion from its operations.

The COVID-19 nationwide lockdown forced many retailers to close stores and conduct sales online whenever possible. For AT&T, the shift showed that it could get by with fewer stores, said communications chief executive officer Jeff McElfresh during a webcast with investors Tuesday.

AT&T will ‘not have as many stores as we did before COVID,’ McElfresh said. He also said the pandemic gave AT&T a ‘head start’ on its cost-cutting plan.

The company didn’t specify how many employees would be affected, but one of its unions said 3,400 technician and clerical jobs will be cut nationwide over the next few weeks.

The Communications Workers of America, which represents about 100,000 of the company’s employees, also said AT&T plans to close more than 250 company-branded and Cricket Wireless stores, affecting an additional 1,300 retail jobs. AT&T notified the union of the impending cuts because of collective bargaining agreements covering the workers.

An AT&T spokesman told The Dallas Morning News there will be ‘targeted but sizable reductions’ in the workforce across executives, managers and union-represented employees. The company also plans to cut contractors, most of whom are outside the United States.”

For the rest of the story, visit CNBC here.

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