AT&T's next CEO: John StankeyAT&T is laying off 3,400 employees and closing more than 250 retail stores, according to Business Insider. The telecom giant and mobile service provider also is seeking to sell its Warner Brothers video game unit, CNBC reports. Investments in strategic growth areas such as AT&T Cybersecurity and 5G networks continue.The changes come as AT&T prepares to transition its CEO post from Randall Stephenson toJohn Stankey, effective July 1, 2020. Stankey, currently president and COO, led AT&T's acquisition of DirecTV and Time Warner.Next up, Stankey is expected to oversee a multi-year strategy that will include "headcount rationalization" and $6 billion in cost savings, he said in April 2020.
"AT&T has been under pressure to reduce costs and sell assets to help pay down debt, expand 5G wireless networks, raise its shareholder dividend and expand its WarnerMedia entertainment offerings. Those include the streaming platform HBO Max, into which AT&T is plowing billions of dollars on content and marketing."
On the video game front, Activision Blizzard, Electronic Arts and Take-Two Interactive Software are taking a look at AT&T's gaming unit. That business could fetch up to $4 billion in a potential sale.
AT&T Staff Cut Details, Security Investments
On the AT&T staffing front, the following near-term moves are planned, according to business insider.
AT&T Mobility and Cricket Wireless retail closures will affect 1,300 jobs
Additional layoffs will involve technical and clerical workers.
Employees impacted by the layoffs will receive severance and healthcare coverage for up to six months.
Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.
