In a significant policy shift, AT&T CEO John Stankey announced last month that 60,000 managers must return to the office starting in July. The directive requires employees to report to one of nine consolidated locations, a drastic reduction from the company’s previous 350 offices across the United States. This consolidation means many workers will need to relocate or consider leaving the company.
“If they want to be a part of building a great culture and environment, they’ll come along on these adjustments and changes,” Stankey stated. “Others may decide, given the station of life they are in, that they want to move in a different direction.”
Internally, employees have expressed concerns that this mandate serves as a covert strategy to reduce the workforce without formal layoffs. One anonymous manager described it as “a layoff wolf in return-to-office sheep’s clothing.”
This move aligns AT&T with other major corporations, such as Google, Meta, and Salesforce, which are enforcing in-person work policies despite employee preferences for remote work. These companies are also implementing layoffs after periods of extensive hiring during the remote work surge. Gleb Tsipursky, CEO of Disaster Avoidance Experts, noted, “Some companies are using return-to-office mandates to get workers to quit voluntarily so they can avoid paying severance.”
Stankey, a nearly four-decade veteran of AT&T, believes that in-office collaboration is essential for aligning functions and fostering the right culture. However, many employees view the mandate as unnecessary and disruptive. A Reddit user highlighted that even those living within a three-hour drive would face grueling commutes at least 75% of the workweek, suggesting the policy aims to prompt resignations to circumvent severance obligations.
The timing of the mandate adds to employee challenges, as the current housing market and high interest rates make relocation particularly burdensome. One commenter cautioned, “AT&T cares nothing about their workers, and it might cause a ripple effect on their services overall.”
Historically, AT&T has engaged in workforce reductions, a practice internally referred to as “surplussing.” Since the pandemic began, the company has laid off nearly 70,000 employees as part of a multibillion-dollar cost-cutting initiative.
Employee resistance to return-to-office policies is not new at AT&T. In August of last year, workers initiated a Change.org petition opposing the mandate, citing concerns such as childcare, elder care, and the need for flexibility. Kieran Knutson, a call center employee and petition organizer, remarked, “There was some sympathy. But clearly it’s a different sentiment in the towers high above us.”
Although this news is disheartening, the shift to hybrid work should not come as a surprise. A 2022 study by AT&T shows hybrid work – a mixture of onsite and remote work – will become the standard operating model across industries by 2024. 100% of senior executive respondents said it would be crucial for attracting young talent.