AT&T is consolidating its 22 internal help-desk centers into six U.S. locations, following a directive from CEO John Stankey and an internal survey that revealed declining employee engagement.
Why it matters: This move is part of AT&T’s broader strategy to streamline operations, reduce legacy costs, and enhance efficiency to remain competitive in the market.
The details:
- Managers are required to decide within two weeks whether to relocate or face layoffs with severance.
- Unionized workers will have the option to remain at their current offices in different customer service roles.
- Affected managers will need to bear their own moving expenses, according to an email shared by a manager who spoke on condition of anonymity.
- The consolidation aims to optimize workflows by colocating similar functions, which will improve efficiency and teamwork, according to an AT&T spokesperson.
AT&T’s strategy to centralize operations in larger, more efficient hubs has previously affected teams drastically. For instance, AT&T Technology Services (ATS) saw managerial relocations reduce the division’s workforce by half.
What they’re saying:
- “Without my income, we’re not going to make it,” said one manager facing a mandatory relocation.
- CTO Jeremy Legg noted at a recent tech conference that the company is leveraging AI to streamline operations further.
By the numbers:
- AT&T employed over 160,000 workers at the start of 2023, but this number had decreased to about 141,000 by year-end.
- The company expects to save $3 billion in annual running costs by incorporating AI more extensively into its operations.
What’s next: As AT&T integrates more software and AI, the potential for significant cost reductions in physical infrastructure and labor becomes apparent. The company’s shares are up around 27% in 2025, reflecting investor confidence in these strategic changes.
