CWA Analysis Shows AT&T ‘Has Cut More Than’ 23,000 Jobs Since Receiving A ‘Big Tax Cut’ At The End Of 2017, ‘Despite Lobbying Heavily’ For The Tax Cut By ‘Claiming That It Would Create Thousands’ Of Jobs
In November 2017, AT&T pushed for the Corporate Tax Cut by promising to invest an additional $1 billion in 2018, with CEO Randall Stephenson saying: "Every billion dollars AT&T invests is seven-thousand hard-hat jobs. These are not entry-level jobs. These are seven thousands jobs of people putting fiber in ground, hard-hat jobs that make ($70,000 to $80,000) per year."
The Corporate Tax Cut was subsequently passed by Congress and signed into law by Republican President Donald Trump on December 22nd, 2017 and the tax cut reportedly gave AT&T an extra $3 billion in cash in 2018, but AT&T cut capital spending and kept laying people off after the tax cut.
A Union analysis of AT&T's publicly available financial statements "shows the telecom company eliminated 23,328 jobs since the Tax Cut and Jobs Act passed in late 2017, including nearly 6,000 in the first quarter of 2019," the Communications Workers of America (CWA) said.
AT&T's total employment was 254,000 as of December 31st, 2017 and rose to 262,290 by March 31st, 2019, but AT&T's overall workforce increased only because of its acquisition of Time Warner Incorporated and two smaller companies, which together added 31,618 Employees during 2018, according to an AT&T Proxy Statement cited in the CWA report.
Excluding Employees gained via mergers, AT&T's workforce dropped from 254,000 to 230,672, a cut of 23,328 jobs, the CWA report points out.
These numbers are for AT&T's Global Workforce, but the vast majority of its Employees are in the U.S.
AT&T reported having 44,892 non-U.S. Employees as of October 1st, 2018.
AT&T also cut more than 10,000 jobs each year in 2016 and 2017.
AT&T had 281,450 Employees as of December 31st, 2015, 268,540 as of December 31st, 2016, and 254,000 by the end of 2017.
"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," the CWA wrote.
"What AT&T is doing to hardworking people across America is disgraceful," CWA President Chris Shelton said. "Congress needs to investigate AT&T to find out how it is using its tax windfall since the company's own publicly available data already raise serious alarm bells. AT&T got its tax cut. Where are the jobs?"
When contacted by ArsTechnica.com, AT&T didn't deny any of the CWA's findings about job cuts.
To Read This Labor News Story In Its Entirety, Go To: https://arstechnica.com/tech-policy/2019/05/att-promised-7000-new-jobs-to-get-tax-break-it-cut-23000-jobs-instead/?fbclid=IwAR1E1MTh-tEgEl1ruS17Um5ExAzSwmA8WR5KqWxQ1EkkCqdjHgwlJLmUjeM