AT&T Inc. (NYSE:T) is planning to cut its Slovakian workforces as the COVID-19 pandemic continues to affect consumer demand. The US multinational company is looking to cushion against the economic fallout caused by the pandemic.
AT&T to lay off 300 workers in Slovakia
Unions have warned that up to 10% of the jobs could be lost following the move. AT&T Global Network Services Slovakia has been operating in the country for almost a decade offering network engineering, customer support a well as other services. The company has a workforce of 2,800 employees in Slovakia where unemployment rates have surged to 7.4% since the COVID-19 pandemic hit in Match.
In a statement, the company stated that it was managing the impact on its people following the decision to cut around 300 jobs. T&T indicated that these were initiatives previously announces and are not a result of the pandemic. A spokesperson stated that the actions align with the company’s focus on growth areas following a drop in consumer demand for legacy products, a change in consumer behaviors due to the pandemic, and economic impact.
The announcement comes months after the company announced that its revenue dropped by 5% in Q3. AT&T equally warned of a COVID-19 pandemic-driven impact on its Q4 revenue in October.
Trade union uniJA Chairman, Martin Horkavy said that he expects the job cuts to affect around 300 workers. Interestingly, the US conglomerate has avoided stating the number of employees that the layoff will affect.
AT&T raising funds for 5G Spectrum
The company is looking to raise around $14 billion to acquire 5G spectrum according to media reports. AT&T is in discussions with various banks to raise the funds to purchase additional 5G airwaves. It will structure the funds as a 364-day delayed-draw term loan expected on January 27. Once the company draws the loan, it will pay a spread of a percentage point over the offered rate. The 5g Spectrum auction is increasingly becoming important and will determine the telecommunications company that will lead the next phase of digital transformation.