AT&T's transformation: automation, AI, and the future of telecommunications

AT&T, which has already reduced its workforce by over half in the past decade, is continuing to cut jobs as it transitions to an AI-driven model. The company is phasing out its traditional landline services and automating internal processes, with CEO John Stankey envisioning a 'dramatically different' AT&T by the end of the decade, featuring advanced fiber internet and wireless networks. AT&T’s chief technology officer, Jeremy Legg, noted that the company’s staffing levels are being compared to peers, and it generated less revenue per employee than competitors Verizon and T-Mobile last year. If current trends continue, AT&T’s workforce could drop to around 85,000 by 2030, though the company disputes this target. In the first half of 2026, AT&T cut 2,100 jobs. Meanwhile, the company is shifting away from copper wire networks, which it expects to retire in over 85% of its service area by year-end, saving significant energy and costs. Pascal Desroches, AT&T’s CFO, highlighted the energy savings from phasing out copper, which has already saved 660,000 megawatt-hours since 2024. AT&T is also investing in cloud-based infrastructure and AI tools to enhance its services and reduce reliance on manual processes.