AT&T has issued notices for the redemption in full of all the outstanding principal amount of six series of bonds totaling approximately $4.3 billion and prepayment of term loans totaling $1.0 billion. The total principal of these prepayments is approximately $5.3 billion.
https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/att-inc-announces-additional-early-repayment-of-debt
No, thank you for all you've done, Randall.
"Layoffs are because they are no longer needed. You were well paid for the work. Thanks for all you did"
Layoffs are because they are no longer needed. You were well paid for the work. Thanks for all you did.
"
Layoffs don't "pay for" anything. Layoffs are how the c-suite are keeping themselves in power.
"
Agreed.
Layoffs are the cut, we need to stop the thing causing the cut (poor decisions up top without accountability) before we can start healing.
Just think how well T-Mobile invested and grew the $4 billion Randall gave them. If T had kept the money they just would have blown it.
That was the best investment Randall ever made.
10 years ago the stock price was at $29. what did it close at today $29. Meanwhile T-Mobile is now at $109. I guess the $4bil we gave them really helped them turn the corner. Oh, was anyone fired for the $4bil mistake? Besides the average worker I mean.
The notion that the layoffs are "paying for" something, and then going rummaging around trying to identify what that something is, well it couldn't be this, maybe it's this, no that, etc. ... is simply a mental block that OP has constructed and is now suffering from.
Layoffs don't "pay for" anything. Layoffs are how the c-suite are keeping themselves in power.
I agree that debt has little to do with forthcoming and ongoing layoff activity. Mismanagement or not, we/AT&T have way more employees that are needed to do the needed and value add work.
Heard pill to swallow - particularly for the entitled, left wingers.
Get the F*CK out of here with all the BS about debt. The layoffs are because Ratty and Stinky and the Board of Misdirectors are incompetent b00bs and could not manage a wet dream. These layoffs are all about them enriching themselves and making all their BS targets so they get their bonuses.
Plus, these globalists definitely enjoy inflicting the pain incurred by wacking as many US people as possible while hiring as many Mumbai U grads as possible.
“To whoever said this you don’t know math. If they lay off 20k people at $125k total compensation average that’s $2.5B/year saved. Also that means they can get rid of another $1B/year in property management cost associated with real estate. This also mean probably another $50M on savings dealing with trucks and company vehicles and I’m sure many more costs.”
Let’s be generous and assume $4B in savings. With $160B+ in debt, that’s a 40 year payback period. $4B is just scratching the surface. AT&T has to generate more free cash flow to get out of the whole it dug with its recent acquisitions.
“ layoffs are nickel and dimes, 150B debt is a lot a HBOMAX subscriptions”
To whoever said this you don’t know math. If they lay off 20k people at $125k total compensation average that’s $2.5B/year saved. Also that means they can get rid of another $1B/year in property management cost associated with real estate. This also mean probably another $50M on savings dealing with trucks and company vehicles and I’m sure many more costs.
With a $164 Billion in debt and $15 Billion in dividends nothing will change in the near future. Cable, Streaming and Satellite TV, and lack of a cohesive strategy AT&T is like a dog chasing it’s tail!!
Look at similar telecom/cable companies. Big ones are doing it with 90 - 100 thousand employees. Why att keeps so many people on payroll is beyond me. But they have to keep the dividend so that can keeps going to the board along with PACs (campaign contributions cough cough) so they keep doing whatever it is they are doing other than k–l companies and creativity (marginalize). But hey they are giving all those high paying jobs to under developed countries so us Americans can get our cell service. Company is messed up and only way to describe it is a cesspool can’t really think of any other way to describe the company. Every country has a right to be sovereign and raping them doesn’t help.
"The company can use their free cash flow to retire debt, buyback stock (which reduces its dividend expense)"
You know what else reduces dividend expense? Reducing the dividend in the middle of a global pandemic. That's the risk that stockholders take and should bear. Why is AT&T the only company to employ the following circular reasoning?
AT&T is a dividend stock. Why? Because shareholders rely on it to pay a dividend without fail, even in times of global pandemic. Why do shareholders rely on AT&T to pay a dividend without fail, even in times of global pandemic? Because AT&T is a dividend stock.
ad nauseum
layoffs are nickel and dimes, 150B debt is a lot a HBOMAX subscriptions
Layoffs will help improve free cash flow in the short term. AT&T took on substantial debt acquiring businesses in the past 5-7 years (DTV, TW, Xander). Given interest rates are at historically low rates, the company can use their free cash flow to retire debt, buyback stock (which reduces its dividend expense), or take a charge to reduce the number of employees. Their goal is to reduce the overall weighted cost of capital (debt and equity financing) to keep investors like the Elliot Management Group happy. For many years AT&T has been able to hide bad decisions due to its strong cash flow from the regulated aspects of the business. Covid is the perfect storm as it is hurting short term revenue while also giving the company an excuse to make deep cuts into the workforce. For those that survive the cuts, you can only hope the company becomes more efficient. After all, when the tide goes out, you find out who was wearing a bathing suit.