AT&T (T) is reportedly cutting thousands of jobs as it looks to save $6 billion in a cost-cutting measure as it looks to offset its $160 billion debt load.
The layoffs come as AT&T also looks to trim its store count by 250 locations after operating on a smaller scale during the coronavirus pandemic. Jeff McElfresh, head of AT&T’s communication division, told Bloomberg, COVID-19 taught the company that it could get by on fewer stores.
The store closures will affect AT&T Mobility and Cricket Wireless stores and impact 1,300 retail jobs, the Communications Workers of America said in a statement
AT&T also has plans to cut 3,400 technician and clerical jobs in the U.S. over the next few weeks, according to the union.
The cost-cutting strategy was first announced by CEO Randall Stephenson in October 2019. At the time Stephenson said, AT&T would eliminate “big chunks of costs” over a period of two years. In March, AT&T also confirmed the “headcount rationalization.”
The wireless company, which has been heavily investing in entertainment content, 5G wireless, and marketing for HBO Max, has been pushed to sell some assets and reduce its overall cost structure, the news outlet said.
AT&T is reported to have one of the largest debts of any nonfinancial company in the U.S.
AT&T stock was trading at $30.39 share at 10:09 a.m. EDT, down $0.39 from 1.28%.