Thread regarding AT&T layoffs

HUB/RELO Math

2023 is the third and final year of Stankey's $6 Billion cost reduction initiative in which he has to come up with $2 Billion is cost savings on a run rate basis. He stated, "that when all is said and done there will be 15,000 fewer AT&T employees by the end of 2023".

Many of those employees impacted are long tenured and relatively highly compensated. Multiplying the HC reduction number times an average total expense per employee of $150,000 per annum results in an annual cost reduction of over $2 Billion.

The HUB/RELO initiative is John Stankey's answer to his cost savings problem-nothing to do with collaboration, everything to do with his bonus.

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| 2096 views | | 6 replies (last May 26, 2023) | Reply
Post ID: @OP+1mN1hRlW

6 replies (most recent on top)

He needs to come up with an additional $15 billion in free cash flow this year per his guidance to the street. There are only a few ways to accomplish such guidance with stagnant revenue growth.
By the way you don't just take into account an employee's salary. It's the entire compensation consisting of life insurance, healthcare, 401k match, HSA match, pension, bonus...

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Post ID: @1ukf+1mN1hRlW

I think the only down vote on the original post and the reply's must be Stankey or one of his lackeys.

Hi John!!!

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Post ID: @geg+1mN1hRlW

Is this something he stumbled into?

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Post ID: @hcq+1mN1hRlW

This is the absolute truth!!!

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Post ID: @bwc+1mN1hRlW

https://www.rcrwireless.com/20230524/carriers/att-ceo-marrying-private-and-public-networks-is-really-important
Part of that operational maturation includes a $6 billion cost-reduction plan which he said would be completed over the course of this year. After that, “I think our next [multi-year] chapter is to move into some of the legacy infrastructure on the copper base and…start sunsetting, retiring a lot of those legacy products and services that we have.”

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Post ID: @gmw+1mN1hRlW

I suspect that number is closer to $200k/employee. Managers make a ki-ling at att

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Post ID: @itt+1mN1hRlW

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