AT&T, touting bonuses and investment fueled by tax reform, quietly lays off thousands

When AT&T Inc. announced it would hand out holiday bonuses to 200,000 workers thanks to Congress' recent tax overhaul, the company's statement failed to mention a separate, yet notable, personnel matter: Many employees will be getting laid off in the coming weeks.

AT&T is eliminating thousands of jobs across the U.S., including 30 in Central Indiana, according to Communications Workers of America, the union that represents AT&T employees. The company is cutting nearly 12 percent of its technicians who install U-verse and DirectTV in the Indianapolis area, according to union figures.

AT&T responded to questions about the layoffs with a statement touting recent hiring. The company declined to confirm the number of job cuts.

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"We’re adding people in many areas where we’re seeing increased customer demand for products and services," AT&T said in a statement. "At the same time, technology improvements are driving higher efficiencies and there are some areas where demand for our legacy services continues to decline, and we’re adjusting our workforce in some of those areas as we continue to align our workforce with the changing needs of the business."

Moments after Congress passed a Republican-backed tax overhaul that will save corporations billions of dollars per year, AT&T was the first major company to draw a link between the bill and benefits for workers. AT&T said it would give $1,000 bonuses to 200,000 employees and invest $1 billion in the U.S. next year.

“This tax reform will drive economic growth and create good-paying jobs," AT&T CEO Randall Stephenson said Dec. 20.

But Larry Robbins, vice president of Communications Workers of America Local 4900, said AT&T was publicly forecasting employment growth while privately notifying employees they would be losing their jobs in the new year.

"We believe there's more than 4,000 people AT&T has (notified of layoffs) across the country," Robbins said. "We believe the $1,000 bonus and the promise of 7,000 new jobs are all a publicity stunt."

Robbins said AT&T eschewed the usual protocol of offering voluntary buyouts and cutting employees with the least seniority in favor of a system that targeted workers who had attendance record problems.

But system glitches led to multiple corrections to the layoff list, Robbins said. That meant some employees who received layoff notifications kept their jobs, while others who thought they were safe found out their jobs would be eliminated.

The affected employees, which include 42 across Indiana, will receive three weeks of severance pay, Robbins said.

In its statement, AT&T said "many of the affected employees have a job offer guarantee that ensures they'll be offered another job with the company."

But Robbins said he is not aware of any offers except for sales jobs at AT&T stores, where few technicians would want to work. Robbins said much of the recent hiring AT&T has pointed to — including 290 employees added in Indiana in 2016 and more than 160 hired through November — can be attributed to sales jobs that are constantly being added because of high turnover.

"All in all, there are no jobs out there," Robbins said. "A mobility job they're opening up because of attrition, it's a high-stress sales job."

U-verse technicians can earn starting pay as high as $18 an hour, with the potential for raises within six months.

AT&T began notifying Central Indiana workers they would be laid off Dec. 15. There was no public announcement regarding the layoffs.

Five days later, Congress passed the tax reform bill. AT&T is among several companies — also including Comcast, Wells Fargo and Fifth Third Bank — that have announced they will give more money to employees and invest in growth because of the tax overhaul.

“Congress, working closely with the president, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” Stephenson said.

Call IndyStar reporter James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.