Headcount reductions are nothing new for the world’s top-20 biggest connectivity providers over the past half decade. One also can note a longer-term trend as fixed network operations, in particular, need to be made more efficient to deal with declining revenues.
source: Economic Policy Institute
source: Economic Policy Institute
But job cuts in the connectivity business have been occurring for 20 years. But sometimes the job cuts really are akin to outsourcing, where a firm shifts headcount to another entity. The net effect is lower headcount, but the jobs are not necessarily “lost.”
By selling assets, AT&T has significantly reduced headcount over the past year.
Over the last four years, AT&T headcount has dropped by 77,400, largely driven by asset sales.
About 12,000 employees were shifted when DirecTV was sold to TPG, a private equity firm.
Another 12,240 jobs were shifted when AT&T sold Vrio, a television business serving Latin America and the Caribbean, to investment company Grupo Werthein.
As Warner Media is merged with Discovery, possibly another 25,000 in headcount will be shifted.
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