AT&T thanks Trump for tax cuts - firing thousands for new year - making them train foreign replacements
Before President Donald Trump passed his tax cuts for the ultra-wealthy and corporations, AT&T said it would result in higher wages for workers.
That was then. Now - fast forward in time - despite the company receiving a $3 billion tax break last year alone, they are laying off thousands of workers. Welcome to the New Year and decade of the 2020's.
In addition to this, the workers will not be receiving any severance pay, and they are being required to train their foreign replacements.
AT&T isn't investing back into their workers at all, which is a very odd thing for a company that is receiving so much more money from the government. They're outsourcing jobs, which is the exact opposite of what Trump said he wants companies to do. But, the historic tax cut legislation he passed doesn't prevent them from doing any of this.
The foreigners that will be replacing the U.S. workers are going to be supplied by new and expanded alliances with the outsourcing companies that AT&T has said is important for them to be "more efficient." AT&T's Jim Kimberly says that when possible, they are "helping employees find other positions within the company.”
Back in 2017, AT&T CEO Randall Stephenson told CNBC what he would do if Trump gave him all this money:
“Lower taxes drives more investment, drives more hiring, drives greater wages. “I know exactly what AT&T would do: We would invest more.”
“This tax reform will drive economic growth and create good-paying jobs,” he added. He made a series of public television appearances pushing this message.
To prove this, right after Trump signed the bill making it law, Stephensen celebrated publicly by giving $1,000 in bonuses to 200,000 of its workers. That's a nice sum of cash. But, let's do the math: that's only $200 million. It was a good publicity stunt and only a fraction of one year of savings. In the end, the company is reaping billions and still not following through on their promises.
This is just the latest string of layoffs. Since the bill was passed, the company has cut nearly 28,000 jobs in total.