AT&T to Lay Off 280 in Dallas Even as It Plans a Bonus for Others Post-Tax Reform

AT&T to Lay Off 280
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AT&T Layoffs in Texas to Impact Non-Management Employees Mostly

AT&T Inc. (NYSE:T) filed a Worker Adjustment and Retraining Notification (WARN) report with the Texas Workforce Commission announcing its plans to lay off 280 employees at a center in Dallas. The layoff date is February 17, 2018.

News of the layoffs came on the same day that the telecommunications company announced that it was, thanks to the passage of President Donald Trump’s tax reform plan (which slashes the corporate tax rate), giving a $1,000 bonus to about 200,000 of its U.S. employees .

The Texas layoffs are not the first round of cuts to be announced at AT&T in 2017. The company has laid off thousands of other employees in 2017. In fact, last week, AT&T quietly laid off more than 700 home installers at DirecTV. Chances are good that, despite the tax reforms, the mass layoffs at AT&T will continue in 2018.

AT&T is in the midst of restructuring plans, a move that will leave hundreds looking for work.

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This round of  layoffs will be completed by March. Of those affected, about 190 non-management employees work at a credit and collections center in Dallas. Another 94 non-management employees at a “premium care center” at the same location are being let go.

The announcement about job cuts in Dallas came the same day that AT&T announced plans to give the majority of its U.S. employees a bonus.

Randall Stephenson, CEO, told employees in a memo, “Once tax reform is signed into law, we plan to invest an additional $1 billion in 2018 and pay a special $1,000 bonus to more than 200,000 — all union represented, non-management and 1st and 2nd line managers — as added recognition for their dedication and hard work.”

Congress passed the GOP tax reform bill on December 20. All it needs now is for President Trump to sign it into law. The tax bill slashes the corporate tax rate almost in half, from 35% to 21% .

For his part, President Trump said after the passage of the tax overhaul that the AT&T bonuses are “…because of what we did. So that’s pretty good.”

That’s no consolation to the workers laid off by AT&T. Especially when you consider that, despite a bumpy ride for the company’s stock (which is down around five percent since the start of 2017), Stephenson will make millions of dollars this year.

AT&T’s Earlier Announcement on Layoffs in 2018

It has been a busy year for layoff plans at AT&T and its many subsidiaries. In addition to the 700+ layoffs that have already taken place at DirecTV, AT&T has announced layoffs at a call center in East El Paso, Texas; plans to shutter its DSL Care Center in downtown Detroit; layoffs at a call center in Richardson, Texas; and other layoffs in Indiana.

The latest round of layoffs to affect AT&T employees was announced on December 16; about 300 workers in Illinois, Wisconsin, Missouri, Michigan, Indiana, and Ohio will be jettisoned. The affected workers are both indoor and outdoor technicians.

The AT&T layoffs for 2018 come on the heels of layoffs recently announced by other telecommunications companies. In January 2018, Verizon Communications Inc. will be laying off 190 employees at its Santa Clara, California office; this is in addition to job cuts announced at Verizon throughout 2017.

The telecom industry as a whole is looking to restructure in order to better compete with their peers and streaming services, which inevitably leads to layoffs. In an effort to be more nimble, telecom companies will continue to streamline throughout 2018, which will result in more job cuts, affecting thousands of Americans.

Sources

WARN Notices,” Texas Workforce Commission, last accessed December 21, 2017.

AT&T, Comcast say GOP tax bill will mean $1,000 bonuses for employees,” The Washington Post, December 20, 2017.

AT&T plans to lay off nearly 300 at center in Dallas next year,” The Dallas News, December 20, 2017.

AT&T giving $1,000 bonus to every employee in the U.S. when Trump signs tax bill into law,” The Dallas News, December 20, 2017.

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