AT&T plans to cut 3,400 jobs, shuts down 250 stores

San Francisco: AT&T plans to cut over 3,400 technician and clerical jobs across the country over the next few weeks, the US wireless carrier has informed its main labour union, the Communications Workers of America.

In addition, the company plans to permanently shutter over 250 AT&T Mobility and Cricket Wireless stores, impacting 1,300 retail jobs, CWA said on Tuesday.

These cuts come amid devastations caused by the Covid-19 pandemic.

"AT&T could help lead the country toward recovery by partnering with its workforce to build next generation networks. Instead the company is adding to the pain of the recession already underway," CWA President Chris Shelton said in a statement.

The employees who will be impacted by the job cuts will receive severance pay and health insurance coverage for up to six months, according to AT&T, CNET reported on Tuesday.

The impacted retail employees will receive the offer of another position at the company, said the report.

"I want to know where these jobs are going," said Joe Snyder, President of CWA Local 4302 in Akron, Ohio who has been an AT&T technician for 25 years.

"From where we sit, it looks like AT&T is pushing the work to low-paid contractors who do not have the same training, experience, and commitment as CWA members. The money they are saving goes into the pockets of wealthy shareholders looking for short-term profits instead of staying here in our communities."