AT&T has announced a significant shift in its work policy, requiring all office employees to work on-site five days a week, effective starting January. Previously, the company had adopted a hybrid work model, but this mandate marks a return to traditional office attendance.
The telecom giant’s decision to increase on-site workdays follows a similar move by Amazon, which has faced delays in its own plans to bring back employees due to capacity issues. AT&T, headquartered in Dallas, has confirmed that it will require a full in-office presence for its employees at the start of the new year.
Last summer, AT&T CEO John Stankey mandated employees to report to one of the company’s nine corporate hubs at least three days a week. The hubs are located in major cities including Dallas, Los Angeles, and Washington. Before this shift, more than 300 offices were operational across the United States.
The change in policy means thousands of employees must either relocate or consider their employment options. According to AT&T’s proxy statement, approximately 18,000 management-level employees have already committed to return to the office. The transition appears to be challenging for some, especially those accustomed to the benefits of a hybrid schedule, which provided flexibility during the pandemic.
Concerns around office capacity have been raised by employees on social media platforms like Reddit. In response, AT&T stated that it is upgrading its facilities and workspaces to accommodate the new in-office requirements. The company emphasizes its commitment to “enhancing our facilities, adapting our benefits programs, and incorporating best practices” to support employees in serving customers effectively.
In contrast, Amazon reports delays in its office return mandate due to space constraints, although most of its locations are scheduled to be ready by January 2. Some employees may face delays until May. AT&T, meanwhile, is expanding its presence in Atlanta by leasing two buildings it had vacated, following reports from CoStar.
AT&T’s stock has performed well, with shares increasing by roughly 40% in 2024, outperforming the S&P 500 index. This success comes despite the company reporting mixed results for the third quarter, with better-than-expected new wireless subscribers but disappointing overall revenue due to a decline in the land-line business.
The push for a complete return to office comes amid growing frustrations among corporate leaders about hybrid work arrangements. An October survey by Korn Ferry revealed a decline in the number of employers requiring five-day in-office attendance, dropping from 89% pre-pandemic to 43% globally. However, some companies, including AT&T, seem determined to reverse this trend and reinforce traditional office attendance.
AT&T’s full return-to-office mandate represents a broader corporate effort to reestablish pre-pandemic work norms. While some employees may face challenges adapting to this change, the company remains committed to enhancing its work environment to ensure optimal employee performance and customer service.
Source: Businessinsider
