In the third quarter of 2024, AT&T and Verizon collectively reduced their workforce by 5,100 positions, intensifying discussions about the role of artificial intelligence (AI) and automation in the telecommunications industry. Verizon reported a reduction of 2,700 employees between July and September, bringing its total headcount to approximately 101,200. Similarly, AT&T decreased its workforce by 2,400 during the same period, resulting in a total of 143,600 employees.
Over the past decade, these two major US operators have collectively reduced their workforce by nearly half. Since 2018 alone, AT&T and Verizon have shed a combined total of 172,200 jobs. This significant downsizing coincides with the industry’s increasing shift towards self-driving and fully autonomous networks, which rely heavily on AI and automation technologies.
The trend of workforce reduction is not confined to the United States. European telecom companies are also undergoing similar transformations. For instance, Vodafone has announced plans to cut 11,000 jobs as part of its restructuring efforts.
Industry analysts attribute these job cuts to the growing adoption of AI and automation, which enable companies to operate more efficiently with fewer human resources. The integration of AI into network operations allows for real-time data analysis and decision-making, reducing the need for manual intervention.
Despite the operational benefits, the rapid implementation of AI and automation raises concerns about job displacement and the future of employment in the telecom sector. As networks become more self-sufficient, the demand for traditional roles diminishes, prompting a reevaluation of workforce strategies.
While the full impact of AI-driven automation on employment remains to be seen, the current trend suggests a continued reduction in workforce numbers as companies strive for increased efficiency and competitiveness in a rapidly evolving technological landscape.