AT&T Plans More Job Cuts as AI Reshapes the Telecom Industry

AT&T has cut more than half its workforce over the past decade—and the telecommunications giant says additional reductions are coming as it prepares for the age of artificial intelligence.

AT&T is preparing for a major transformation. The company is using AI to automate internal processes, replacing aging infrastructure and discontinuing portions of its traditional landline service. Jeremy Legg, AT&T’s chief technology officer, told WIRED that the company will not have the same number of employees in five years.

“In five years, we’re not going to have the same number of employees we have today,” Legg said. He added that comparisons with competitors play an important role in AT&T’s staffing decisions. Publicly available financial data shows that AT&T generated less revenue per employee last year than Verizon and T-Mobile, both of which have also laid off workers in recent months.

If AT&T continues cutting jobs at last year’s pace, the company could eliminate about 8,000 jobs. That would bring its workforce to roughly 85,000 employees by 2030. A person familiar with the matter, who was not authorized to speak publicly, said that figure is the company’s goal. AT&T said the numbers were inaccurate. The company cut approximately 2,100 jobs during the first half of 2026.

AT&T wants to become a “drastically different” company

AT&T CEO John Stankey said at the Goldman Sachs Communacopia+ Technology Conference in San Francisco earlier this month that, by the end of the decade, AT&T wants to be viewed as a “drastically different” company with “great” fiber internet service and a “great wireless network.”

AT&T’s transition offers a look at how traditional companies are reshaping their businesses as AI tools become more capable. The 150-year-old company remains an important part of the global economy and handles about 15% of the world’s internet traffic. Legg said AT&T had approximately 131,000 employees as of June.

The challenge is whether AT&T can reduce costs and drive innovation while competing with companies such as Elon Musk’s businesses.

AI is automating AT&T’s legacy operations

Some of AT&T’s decades-old systems still rely on paper records and manual processes. For example, employees have traditionally handled tasks such as disconnecting a customer’s phone service by hand. Some of that work is now being automated.

Telecommunications companies are using AI for customer service, cell tower location planning and the detection of maintenance problems. AT&T uses a generative AI system called GeoModeler to adjust network settings during rare events, including extreme weather. Like many companies, AT&T also uses AI to generate software code and help manage service issues.

Cloud networking could eliminate more telecom roles

Beginning next year, AT&T plans to replace physical hardware in thousands of central hubs with cloud software from DriveNets, an Israeli startup in which AT&T has invested. The change will allow technicians to make adjustments remotely, including when a customer requests faster internet service.

As more telecom tasks become automated, many middle-management and junior developer roles are expected to disappear.

Employment in the U.S. communications industry has declined for 25 years, according to government data. However, the prospect that AI could accelerate the trend while boosting profits is appealing to investors.

AT&T is retiring its copper landline network

AT&T is also retiring the energy-intensive copper network that has long supported its landline and DSL internet services. Because alternative services may not be available in rural areas, discontinuing those services generally requires approval from state and federal regulators.

Local protests have erupted in some communities over the plans. Still, by the end of this year, AT&T expects that copper will no longer be needed across more than 85% of its existing footprint.