AT&T is closing 320 company-owned AT&T Mobility retail shops in November and December, affecting greater than 1,600 employees, in line with the Communications Employees of America (CWA) union.
AT&T didn’t verify these numbers, however CWA mentioned the closures are on prime of the 250 shops that AT&T closed earlier within the 12 months.
In keeping with the operator, they’re half of a bigger development. Purchasing patterns are altering, and extra individuals are OK with shopping for their units and providers on-line, a follow that began earlier than Covid.
“As we’ve beforehand introduced, we’re reworking our enterprise. That features adjusting our retail presence to mirror our prospects’ purchasing practices. Whereas these plans usually are not new, they’ve been accelerated by the COVID-19 pandemic,” AT&T mentioned in an announcement.
Nevertheless, the CWA mentioned that whereas AT&T blames retailer closures on altering buyer conduct throughout the pandemic, the lowering variety of shops is a part of a plan proposed a year ago when hedge fund Elliott Administration fought for modifications on the firm.
On the time, Elliott identified opportunities for AT&T to cut back prices in its retail footprint, together with closing redundant shops and growing labor productiveness. It additionally advocated better use of approved retailers, most of that are run by an organization referred to as Prime Communications that makes use of AT&T branding. Employees at approved supplier shops typically earn lower than union-represented employees at company shops and have fewer advantages, in line with CWA.
CWA earlier this week blasted AT&T for its use of subcontractors that the union mentioned pose a security menace within the communities they work in. The CWA has seen its membership dwindle as a result of AT&T’s efforts to cut back its workforce as a part of an total plan to chop operational prices by $6 billion.
In an announcement as we speak, AT&T instructed Fierce that the corporate will “make each effort to position staff in different close by AT&T shops.”
All frontline union-represented staff shall be supplied a task both in a close-by retail retailer or as a work-at-home name middle consultant, in line with the corporate. “Others shall be inspired to use for open roles which may be obtainable in different components of the enterprise,” the assertion mentioned.
In keeping with a Wave7 Analysis report primarily based on evaluation performed in June, AT&T had greater than 5,000 shops, of which barely greater than 2,000 have been company shops; the others have been supplier shops.