AT&T Promised 7,000 New Jobs To Get A Tax Break But Cut 23,000 Instead
Communications giant AT&T vowed to create thousands of jobs when it received a hefty tax break in 2017, but the company has failed to live up to its promise, according to ArsTechnica.
Instead, AT&T has cut more than 23,000 jobs since getting its tax cut, as well as cut back its capital spending.
When the company lobbied for the tax cuts in 2017, CEO Randall Stephenson said that "every billion dollars AT&T invests is 7,000 hard-hat jobs. These are not entry-level jobs. These are 7,000 jobs of people putting fiber in ground, hard-hat jobs that make $70,000 to $80,000 per year."
AT&T’s portion of the tax breaks reportedly amounted to an extra $3 billion in cash in 2018.
Nevertheless, the company’s global workforce, which primarily involves employees in the United States, “dropped from 254,000 to 230,672, a cut of 23,328 jobs.”
"AT&T's annual report also shows the company boosted executive pay and suggests that after refunds, it paid no cash income taxes in 2018 and slashed capital investments by $1.4 billion," according to the Communications Workers of America (CWA).
AT&T did not deny the job cuts and told Ars: "We continue to hire in areas where we're seeing increasing demand for products and services, but technology is changing rapidly, and that affects hiring and employment. There are fewer jobs in parts of the business that are declining and facing technology shifts."