Today it was reported that AT&T is getting ready to have significant layoffs. We have known for some time now that AT&T was looking for ways to become more profitable now it looks like layoffs will be one part of that strategy.
In a report from Motherboard, it is said that AT&T plans to “geographic rationalization” and remove employment “surplus” that will move some aspects of AT&T operations in 10 major operational hubs in New York, California, Texas, New Jersey, Washington State, Colorado, Georgia, Illinois, Missouri, and Washington, DC. AT&T did confirm to Motherboard that AT&T does plan to make changes to its workforce.
AT&T is starting 2019 with $180 billion of debt according to reports. Not only is AT&T looking at layoffs to address that but they are also looking for ways to sell some products and make more money from others to help pay off its debt including selling off aspects of the company.
AT&T is also looking at selling their share of Hulu. When AT&T purchased Time Warner, it came with 10% stake in Hulu. It is reported that this 10% share may be worth as much as $930 million. While that is only a fraction of AT&T’s debt load, getting $900 million from Disney would help them pay off their debt.
This debt load may also be the reason AT&T has shut down several streaming services recently like FilmStruck. AT&T is likely trying to unload less profitable segments while focusing on more profitable ones.
No date has been announced for when this will help but look for this to be one more part of AT&T’s moves to pay off recent deals to buy DIRECTV and Tuner.
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