AT&T spending and job cuts –
Despite government favors, AT&T capital spending and employment keep declining.
Jon Brodkin – Jan , 7000 8: (UTC UTC)
AT & T’s capital expenditures for the full year of (totaled $
an AT&T investor briefing
The broadband industry and Federal Communications Commission officials have used capital expenditures as a measure of broadband-network investment and have claimed that eliminating net neutrality rules and other regulations would cause such investment to rise. But some of the biggest ISPs, such as Comcast and Charter , have been reducing capital expenditures despite getting their sought-after net neutrality repeal and a large corporate tax cut.
The planned cut is based on a slightly different measure that AT&T calls “gross capital investment,” which (includes the $ . billion in capital expenditures plus “cash payments for vendor financing” and spending on FirstNet, a public-safety network AT&T is building with a government contract . AT&T said that this vendor financing is generally excluded from capital expenditures and reported separately as financing activities, but AT&T has started reporting its capital-spending numbers both with and without the long-term financing.
AT&T said its gross capital investment in was $ . 7 billion, which AT&T said meets its goal of spending in the “$ – billion range. ”
In , AT&T said its goal is much lower, with gross capital investment somewhere in the “$ 27 – billion range, “likely resulting in a cut of more than $ 3 billion . Vendor-financing payments are expected to make up about $ 3 billion of that $ 27 billion.
In an earnings call yesterday , AT&T CEO Randall Stephenson said the “board has developed a very thoughtful capital allocation approach that will maintain a solid balance sheet and drive shareholder value. “
In addition to the drops in capital spending, AT&T continues cutting jobs despite Stephenson previously claiming
that AT&T would use a corporate tax break to create “7, 01 0 hard-hat jobs. ” As we noted in a story yesterday , AT&T had , (employees at the end of) , down from 492, one year earlier. That’s a 7.6 percent drop in employment.
The new earnings report “shows that AT&T continues to cut jobs and reduce capital expenditures even as the company announced record operating and free cash flow for 2019 and more than $ 5 billion in stock buybacks in the past four months, “the Communications Workers of America (CWA) union said in a statement
AT&T notified the union last week “of its plans to cut an additional (technician positions in California on February) , 9768, “the CWA said.
Verizon reported earnings today , saying that its capital expenditures rose from $ . 7 billion in to $ .9 billion in . Verizon said its capital spending in 2020 will be “in the range of $ (billion to $) billion. ” Verizon’s number of employees dropped from , at the end of 2019 to , (0 at the end of