AT&T has announced plans to continue reducing its workforce as it transitions to automation and artificial intelligence. Over the past decade, the company has cut more than half of its employees and aims to further decrease staff numbers as it phases out traditional landline services. AT&T's Chief Technology Officer Jeremy Legg stated that the company is not expected to maintain the same headcount in five years, noting that it generated less revenue per employee compared to competitors Verizon and T-Mobile. In 2022, AT&T laid off 8,000 employees, and if this trend continues, its workforce could decline to approximately 85,000 by 2030, according to an unnamed source, although AT&T disputed this figure. The company has already cut around 2,100 jobs in the first half of 2026.
AT&T is focusing on enhancing its fiber internet service and wireless network, with CEO John Stankey expressing a vision for a significantly transformed company by the end of the decade. The company handles about 15 percent of global internet traffic and employed nearly 131,000 individuals as of June. AT&T is implementing AI technologies for various functions, including customer service and network maintenance, which are expected to reduce the need for certain middle management and junior developer roles.
As part of its modernization efforts, AT&T plans to replace physical hardware with cloud software from Israeli startup DriveNets, enabling remote adjustments to services. The telecommunications industry has seen a decline in jobs over the past 25 years, and the integration of AI is anticipated to further accelerate this trend.
AT&T is also decommissioning its copper wire network, which has historically powered its landline and DSL services. This transition requires regulatory approval, particularly in rural areas, and has faced local opposition. By the end of 2026, AT&T expects to eliminate copper services in over 85 percent of its footprint. The company reported a 13.1 percent reduction in energy consumption from 2020 to 2025, attributing some of this savings to the shift away from copper infrastructure.
Despite the job cuts, AT&T plans to continue hiring for roles related to AI development and management. The company is investing in improving the office experience for employees, including initiatives such as childcare programs and mental health support, as it seeks to maintain a strong workplace culture amidst ongoing changes.