Randall Stephenson testified AT&T would add 7,000 jobs if Trump's tax cut passed, worth $billions to them. Instead, he has cut 37,000 positions. Randall's going away, but his successor John Stankey is committing to even more cuts. 

Almost everyone ignored the 2016 company plan to shed 80,000 positions, although my primary source was a top company executive to the NY Times. That's a cruel, heartless cutback, possibly the largest since Elisha Gray and Alexander Graham Bell invented the telephone.

It's probably a good strategy for shareholders, however. Many other telcos are losing fortunes trying to grow in a low growth industry. Much of the 5G hype comes from Nokia & Ericsson trying to persuade telcos to invest in products unlikely to pay off. Until the DirecTV and Warner purchases, AT&T was avoiding stupid investments.

AT&T's shareholders have been hit by the $20-30 billion dollar overpayment for the TV companies. Randall is a financial wizard and has long obscured AT&T's underlying business. It now is borrowing money to raise the dividend and buy back stock. Top analyst Craig Moffett has a very rare sell on the stock.

America is a very cruel country to anyone over 40 who loses a job.

AT&T Cuts More Than 37,000 Family Supporting Jobs Despite Promises of Job Creation

AT&T’s Q4 earnings report, released today, shows that the company has cut 37,818 jobs since the Tax Cuts and Jobs Act went into effect in 2018.

Wednesday, January 29, 2020

WASHINGTON -- Today’s AT&T earnings report shows that AT&T continues to cut jobs and reduce capital expenditures even as the company announced record operating and free cash flow for 2019 and more than $5 billion in stock buybacks in the past four months. The company has cut 37,818 jobs since the Tax Cuts and Jobs Act (TCJA) went into effect in 2018, including 4,040 in the fourth quarter of 2019. Capital expenditures declined by more than $1 billion in 2019 as compared to 2018.

Last week AT&T notified the Communications Workers of America (CWA) of its plans to cut an additional 200 technician positions in California on February 14, 2020.

AT&T and other corporations continue to be under scrutiny for failing to follow through on their promises to use tax windfalls to create jobs, raise wages and increase investment in infrastructure. AT&T’s CEO Randall Stephenson pledged to create 7,000 new jobs if President Trump’s corporate tax cuts passed. Stephenson also signed onto a statement as a member of the Business Roundtable committing to invest in employees and support the communities where they live and work. Instead, the company is cutting jobs and outsourcing work, including relying on lower wage subcontractors to build its 5G network.

Meanwhile, AT&T has continued to cater to the demands of controversial vulture hedge fund Elliott Management, which purchased a small stake in AT&T in September 2019. Elliott is pushing AT&T to extract profits from the company by eliminating jobs, outsourcing work, and divesting critical assets. In early October, AT&T announced that it would sell its Puerto Rico and U.S. Virgin Island Mobility units to Liberty Latin America (LLA), putting at risk the deployment of FirstNet and nearly 900 union jobs.

Elliott has also won a commitment from AT&T to spend $30 billion on stock buybacks, which will drive up its share price to enrich a small group of wealthy investors, leaving fewer resources for building next generation wireless and fiber broadband networks and training workers for the jobs of the future. Credit-rating agency Moody’s has raised concerns that the large cost of the stock buyback plan puts AT&T at risk for a credit downgrade.

CWA has called on AT&T’s CEO, board of directors, the company's 100 largest investors, and the Business Roundtable to reject damaging proposals from Elliott Management. Last month, the Private Equity Stakeholder Project (PESP) sent a letter to over 140 investors in Elliott Management on CWA’s behalf, highlighting the deteriorating performance of Elliott’s two primary hedge funds.

“The list of communities being destroyed all across America continues to grow with the elimination of jobs at AT&T, despite promises of job creation from company executives,” said CWA President Chris Shelton. “To make matters worse, AT&T is using its profits to enrich wealthy shareholders instead of investing in building the next generation networks that Americans, especially in rural and underserved areas, so desperately need. CWA members and our allies will keep fighting until the company stops eliminating jobs so that they can provide the high-quality service that customers deserve.”

More than 25,000 AT&T workers represented by CWA will begin bargaining for new contracts in February. CWA’s contract with AT&T Southwest Mobility is set to expire on February 21, 2020, and CWA’s contract with AT&T West will expire on April 4, 2020. In August, 2019, 20,000 CWA members at AT&T went on strike after contract negotiations stalled.

Quarterly Change in Total Employment at AT&T

 

 

https://cwa-union.org/news/releases/att-cuts-more-37000-family-supporting-jobs-despite-promises-of-job-creation

The world needs a good news source on Internet and telecom policy. I hope to create one. Catch a mistake? Email me please.  Dave Burstein

Latest

Professor Noam's "Many Internets" http://bit.ly/ManyNets

Until about 2010, everyone agreed the Net was a "network of networks," not a monolithic entity. There was a central authority, ICANN, keeping track of domain names, but that was a minor administrative function.
Columbia Professor Noam suggests we might be better off accepting that some nations or groups might want to organize their networks differently. It's easy to see demand for an Internet with much more effective filters against material some think harmful to children. (Any 10 year old can easily find porn today. Many do.)
Internet translation is getting better very quickly. You might want an "Internet" that translates everything into your language. Google Chrome translation isn't perfect but I was able to research most of this story on Russian language sites. With a few more years progress, I might welcome an alternate that brings me everything in English, including caching for better performance.
De facto, Internet news is already split, as hundreds of millions only get their news from Facebook. Google AMP pages, including for news, also favor selected parts of the net
Centralizing the DNS doesn't prevent censorship, as the Chinese have demonstrated. There are many Jewish and Muslim fundamentalists who want to block what they consider blasphemy and limit free speech. See http://www.nytimes.com/2012/05/21/nyregion/ultra-orthodox-jews-hold-rally-on-internet-at-citi-field.html . More from Noam http://bit.ly/ManyNets

Russia Orders Alternate Root Internet System http://bit.ly/RussiaDNS
It's actually practical and not necessarily a problem.The Security Council of the Russian Federation, headed by Vladimir Putin, has ordered the "government to develop an independent internet infrastructure for BRICS nations, which would continue to work in the event of global internet malfunctions ... This system would be used by countries of the BRICS bloc – Brazil, Russia, India, China and South Africa." RT
Columbia University Professor Eli Noam and then ICANN CEO Fadi Chehadé have both said such a system is perfectly practical as long as there is robust interconnection.
Actually, the battle over ICANN and domain names is essentially symbolic. Managing the DNS is a relatively insignificant task, more clerical than governing. ICANN Chair Steve Crocker pointed out they had very little to do with policy.
Some will claim this is about blocking free speech but that's rhetoric. Russia doesn't need to fiddle with the DNS for censorship, as the Chinese have demonstrated. The wonders of the Internet will continue so long as the resulting nets" are robustly connected. The ICANN and U.S. policy goal should be to help create that system for interconnection.
I expect contentions that “The Russians are taking over our Internet” and “They are splitting the Internet.” The Internet is a “Network of Networks.” It is not a monolith so what would “splitting” it mean or do?
After the WCIT, China realized that ICANN and the DNS are side issues not worth bothering about. They have been building alternate institutions including the World Internet Summit in Wuzhan and the BRICs conferences.  The Chinese have put their main work where decisions that matter are made. Wireless standards are set by 3GPP, where nothing can be approved without China's consent.
The American battle at ITU is proving to be a historic mistake.
Why does Russia want an independent Internet?
They fear that Western sanctions on Russia could cripple the Russian Net. Communications minister, Nikolay Nikiforov, worries about, "a scenario where our esteemed partners would suddenly decide to disconnect us from the internet." I think that's highly unlikely but Nikiforov points out, “Recently, Russia is being addressed in a language of unilateral sanctions: first, our credit cards are being cut off; then the European Parliament says that they’ll disconnect us from SWIFT."
It makes sense for the Russians to be prepared for such a contingency as the Cold War has been warming up on both sides. "Britain's top military chief Air Chief Marshal Sir Stuart Peach just made headlines warning Russian subs "could CRIPPLE Britain by cutting undefended undersea internet cables." Much more http://bit.ly/RussiaDNS

ICANN Continues Excluding Russia & China From the Board http://bit.ly/CEOPromises
No wonder Russia wants an alternate root. Three years ago, ICANN CEO Fadi Chehadé promised "a seat at the table" to Chinese Premier Li. ICANN welched and this year added two more Americans.
Almost all the ICANN board is from the U.S. and close allies; only about 4 of the 18 board members are from countries on the other side of the North/South divide in Internet policy.  Claiming ICANN represents the Global Internet is inappropriate. China is 1/3rd of the Internet but has no representation on the board.
I know many of the board members. They are all basically honorable but generally share a strong opinion on North-South issues.
Larry Strickling of the U.S. government knew just what he was doing with the IANA transition. He handed over to a board with similar positions as the U.S. government.
"The system is unsustainable while it excludes half the world," I have been saying since 2012. More, including the transcript of Fadi's statements,http://bit.ly/CEOPromises

Sorry, Ajit Pai: Smaller Telcos Did Not Reduce Investment After NN Ruling http://bit.ly/SorryPai
Pai justifies his NN choice with the claim, "The impact has been particularly serious for smaller Internet service providers." #wrong (Actually, NN has minimal effects on investment, up or down, I’m convinced. Competition, new technology, customer demand and similar are far more important.)
The two largest suppliers to “smaller ISPs” saw sales go up. Adtran's sales the most recent nine months were $540M, up from $473M the year before. 2016 was $636M, 2015 $600M. Calix the last nine months sold $372M, up from $327M. The full year 2016 was $459M, up from $407M in 2015. Clearfield, a supplier of fiber optic gear, was up 8% in sales in the smaller ISPs.
There is nothing in the data from others that suggests an alternate trend. Anyone could have found this data in a few minutes from the company quarterly reports.
The results in larger companies are ambiguous. I can "prove" capex went up or went down by selecting the right data. The four largest companies' capex - two/thirds of the total - went up from $52.7B in 2015 to $55.7B in 2016. The result remains positive after making sensible adjustments for mergers and acquisitions. That's as close to "proving" that NN led to increased spending as the facts chosen to prove the opposite.
Actually, whether capex went up or down in 2016 tells us almost nothing about the choice on neutrality. Everyone knows a single datapoint could be random or due to other causes. Much more, including the source of the errors http://bit.ly/SorryPai

Elders Bearing Witness: Vint, Timbl, & Many More http://bit.ly/VintTim
Vint Cerf, Tim Berners-Lee, Steve Wozniak and more than a dozen true Internet pioneers wrote Congress to protect Neutrality. The best Congress money can buy didn't listen but I wanted to reproduce their letter.
I hope they are wrong believing "is an imminent threat to the Internet we worked so hard to create." My take is the impact will be moderate in the short run.
From the letter:
We are the pioneers and technologists who created and now operate the Internet, and some of the innovators and business people who, like many others, depend on it for our livelihood. ... The FCC’s proposed Order is based on a flawed and factually inaccurate understanding of Internet technology. These flaws and inaccuracies were documented in detail in a 43-page-long joint comment signed by over 200 of the most prominent Internet pioneers and engineers and submitted to the FCC on July 17, 2017.
Despite this comment, the FCC did not correct its misunderstandings, but instead premised the proposed Order on the very technical flaws the comment explained. The technically-incorrect proposed Order ... More, including the full list, http://bit.ly/VintTim