AT&T|T-Mobile is job killer

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Jobs are a top concern of public interests groups as they review the proposed merger of AT&T and T-Mobile. The "efficiencies" extolled by AT&T executives, these groups say, is is code for an unsettling possibility: the elimination of thousands of jobs.

"There will be hundreds, or even more, of empty storefronts in malls all over the country, and a lot of customer service representatives will lose their jobs," said Andrew Schwartzman, senior vice president and policy director at the Media Access Project, a consumer group fiercely opposed to the merger.

Public Knowledge legal director Harold Feld predicted that "redundant" staff will get pink slips. "Outlet stores and customer service centers will be consolidated, as will work crews that maintain the networks. I do not know the precise numbers, but I would expect, based on previous mergers, that it will result in the loss of thousands of jobs," Feld said.

Jeffrey Silva of Medley Global Advisors said employees could lose their jobs as the companies streamline their operations and root out redundancies. But he noted that this could be offset by the creation of new jobs as AT&T spends on infrastructure over the next seven years. "It may mean layoffs, and that could become a flashpoint in the debate. Layoffs tend to be inherent in mergers in order to gain efficiencies," Silva said. "But you can't make any blanket statements, because you have the potential, on the other hand, to create jobs with investments in infrastructure."


AT&T|T-Mobile is job killer