AT&T promised 7,000 new jobs to get tax break—it cut 23,000 jobs instead

AT&T promised 7,000 new jobs to get tax break—it cut 23,000 jobs instead

  • 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.
  • AT&T in November 2017 pushed for the corporate tax cut by promising to invest an additional $1 billion in 2018, with CEO Randall Stephenson saying 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.”
  • The tax cut reportedly gave AT&T an extra $3 billion in cash in 2018.
  • 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 said yesterday.
  • “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 we wrote about AT&T layoffs in January this year, AT&T told Ars that “We hired more than 20,000 new employees last year and more than 17,000 the year before.” But the company’s financial statements make it clear that new hirings fell far short of job cuts.