Among the major operators in North America and Western Europe, AT&T has been at the forefront of job cuts, with its workforce decreasing by 117,100 workers (or nearly 42% of the total from 2017) between the beginning of 2018 and the end of 2022. Since January, 5,100 more positions have been cut. Operating costs were over $24 billion in the first quarter, the same as the prior year, albeit with the significant decrease in headcount. The company's cost-cutting goal is $6 billion, however on a recent earnings call with CEO John Stankey and investors, no information was disclosed regarding the remaining workforce cuts. Stankey stressed AT&T's digital transformation and the use of artificial intelligence to improve operations, possibly pointing to future job losses.

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Resulting Layoffs for RTO

Nine primary offices will now house all of AT&T Inc.'s office space. Starting in July for the primary hubs and by September 4 for other core locations, over 60,000 managers will be obliged to work in-person at least three days per week. Dallas and Atlanta serve as the main centers, with Los Angeles, Seattle, Washington, San Ramon, St. Louis, Middletown, and Bedminster serving as the other outposts.

According to the CEO of AT&T, 85% of the affected managers reside close to the new offices, with the remaining 15% possibly basing their decisions on their individual circumstances. Stankey claims that even though the business is providing "generous" relocation services, it still anticipates that AT&T will employ around 15,000 fewer people this year than it did last year. The $6 billion cost-cutting effort at AT&T is still in effect.

The decision was made at a time when many businesses are having trouble getting workers back to the office after implementing remote work rules during the pandemic. The AT&T attendance requirement only applies to supervisors who are involved in operational tasks, not to unionized employees who work in customer service, retail, or field service. Operational managers are subject to AT&T's attendance policy, which divides management staff into two groups: office-based and remote.  Approximately 10% of managers will have a virtual arrangement and only need to be in the office one to five days per month, while the majority will be needed to be there at least three days per week. Collaboration and fostering a dynamic workplace culture were significant points made by Stankey. 

Citigroup has started taking action to ensure adherence to its work policies in a parallel development. Managers have been instructed to advise their staff members of the potential repercussions for breaking the office attendance rules. Even if the bulk of the workforce abides by the hybrid work policy, Citigroup is paying special attention to employees who have inexplicable and frequent absences.

Additionally, Citigroup has stated that adherence to office attendance guidelines will be taken into account when evaluating employee performance and setting compensation levels. This implies that repeated non-compliance may have an adverse effect on a worker's ability to advance in their career and receive compensation from the employer.

Citigroup has stated its commitment to its hybrid work approach notwithstanding these measures. This model strikes a balance between in-office cooperation and remote flexibility by allowing workers to work a minimum of three days in the office and a maximum of two days remotely.

These actions by Citigroup and AT&T are a reflection of the difficulties businesses are facing as they make the switch from remote work practices put in place during the epidemic to more conventional office-based models, as well as the various responses these changes are receiving from their staff.

The journey of AT&T is comparable to that of a patient recovering from surgery. The company reduced its employment and is now requiring workers to report to work, a move that management hopes will help the business get back on track. Employees at AT&T must now get used to new routines as they return to work. However, due to the new office locations, 15% of the impacted employees must make a difficult choice between quitting the company or relocating.

For AT&T employees and retirees, a financial counselor becomes crucial, much as a specialized doctor watches a patient's recuperation. A financial advisor, like a doctor, is aware of the particular challenges experienced by persons leaving AT&T, including the 15,000 anticipated employees leaving. In addition to retirement income, investment strategies, tax preparation, and estate management, they offer individualized financial advice. The 15% of workers will use this information to decide whether to relocate or leave AT&T.