AT&T to Cut 2,100 Jobs in First Half of 2026 as AI Automation Expands

AT&T Cuts 2,100 Jobs in First Half of 2026

AT&T has eliminated 2,100 jobs in the first half of 2026, continuing a workforce reduction that has already seen the company shed more than half of its employees over the past decade. The telecommunications giant employed nearly 131,000 people as of June and is preparing for further cuts as it expands automation and artificial intelligence across its operations.

AI and Automation Drive Restructuring

Chief technology officer Jeremy Legg told WIRED that AT&T does not expect its current staffing level to hold as the company modernizes. He said the company will not have the same headcount in five years as it does today. Legg also noted that AT&T compares its staffing levels to peers, and public financial disclosures show AT&T generated less revenue per employee last year than Verizon and T-Mobile, both of which have also reduced workers in recent months.

AI is central to the operational changes. AT&T is using AI systems for customer service, software development, service-ticket management, cell-tower planning, and network maintenance. A generative AI system called GeoModeler adjusts network settings during rare events like extreme weather. Some older processes still rely on paper records and manual steps, such as disconnecting phone service, and those tasks are now being automated. Middle-management and junior developer roles are expected to decline as more work is handled through automated systems.

Workforce Target Disputed

If AT&T continues cutting jobs at last year’s pace, when it eliminated 8,000 positions, its workforce could approach 85,000 employees by 2030. A person familiar with the matter described that number as the company’s target, but AT&T called the figure inaccurate. The company has not confirmed any specific long-term headcount goal.

Network Overhaul and Copper Retirement

Starting next year, AT&T will replace physical hardware at thousands of central hubs with cloud software from DriveNets, an Israeli startup in which AT&T is an investor. The change will allow technicians to make adjustments remotely, such as increasing a customer’s internet capacity without traveling to a hub.

AT&T is also decommissioning its copper wire network, which has powered landline telephone and DSL internet services. By the end of this year, the company expects it will no longer have to offer copper in more than 85 percent of its existing footprint, though some retirements require state and federal approval where alternatives are limited. Chief financial officer Pascal Desroches said the shift allows AT&T to retire underutilized infrastructure that absorbs significant power and personnel attention.

Energy Savings and Future Vision

AT&T said total energy consumption fell 13.1 percent from 2020 through the end of 2025. Since 2024, moving away from copper has saved 660,000 megawatt-hours of electricity, enough to power about 65,000 homes, according to the company. AT&T declined to share exact figures about its current electricity usage.

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 seen as a dramatically different company with a fantastic fiber internet service and a kickass wireless network. The company also expects its workforce to evolve, continuing to hire for roles that build and govern AI agents, supervise automated workflows, and maintain fiber infrastructure.

Industry Context

Jobs in the US telecommunications industry have been declining for 25 years, according to government data. AT&T’s moves reflect a broader trend of legacy companies restructuring operations as AI tools become more capable. The company has also returned most workers to a five-day office schedule, a policy Legg said contributed to some natural attrition.

Sources

• AT&T Is Automating Away Jobs—and Its Old Telecom Empire | WIRED
• AT&T Plans More Job Cuts as AI Automation Reshapes Its Network | ChatAI