The full e-mail from McElfresh to all employees.
For the past few months we've discussed our priorities to accelerate market momentum in wireless, fiber-fed broadband and software-delivered entertainment. Reaching our full potential in these growth areas will require simplification of our product portfolios and meaningful improvements in the experience we deliver to our customers. Transforming our operating model to drive focus on execution — with a culture of accountability and decision-making closer to the customer — is an important step forward.
Executing well in each of these areas with a highly engaged employee team equipped with the right tools and organized to deliver is how we win, create market momentum and grow the business — not just for the next quarter, but for years to come.
Earlier this year, we made some organizational changes to our Consumer segment and the results have been effective, but there is more improvement needed in that area and across the rest of our business.
Through extensive external benchmarking and your feedback, we've identified several areas where we can and must improve. Among other things, success will require changes to our operating model and organizational structure that will directly address many of our biggest remaining challenges, while positioning us for long term, sustainable growth.
Today, we're taking the first big step. You will hear more about these changes from your leaders today and in the coming weeks, but here are the major areas where we're fundamentally changing how we execute:
We are creating a Consumer Customer Advocacy and Service organization to drive improvements in how we serve our mobility and broadband customers. For the first time ever, a single team under one leader will be fully accountable for the customer experience from installation to care and service. This unified team will serve customers how they expect to be served, removing friction in our processes and streamlining handoffs between the existing teams, which is where problems tend to occur. This organization will combine our Consumer Customer Care and Customer Service teams with our Consumer Field Operations team. We're doing the same with our new Business Customer Service and Operations organization, placing our Business Care and Business Field Operations under one leader, eliminating the need for multiple handoffs and ensuring full accountability — from the central office to the customer location. Delivering a simplified portfolio of products and services that is responsive to the marketplace will require tight alignment and clear roles and responsibilities between our product marketing and technology teams in ACC. We cannot afford to have fragmented roadmaps that lead to subscale, inefficient or underutilized platforms. To drive the right consistency and alignment, we are splitting AT&T Technology and Operations into two distinct and focused organizations and creating Product & Platform teams within Consumer and Business. A newly formed AT&T Network Engineering and Operations group will continue building a best-in-class wireless and fiber integrated network for the future, along with collaborative network solutions that meet the needs of businesses and consumers. We're creating a new Technology Services organization dedicated to IT Services and Network Security. This team, which will be led by Jeremy Legg (formerly CTO of WarnerMedia), will be responsible for our information technology, software and data architectures for the company. They will lead our transition from legacy operations and systems to modern application solutions. And they will ensure our product support roadmaps align to the next generation of technology and data architecture standards, as well as simplify our portfolio of IT tools for employees. Simply put, the team's job is to eliminate redundancies in our processes and platforms and build our IT systems for the next 3-5 years. The Product & Platform teams within both Consumer and Business that I mentioned earlier will be responsible for making our product portfolios simple. These teams will partner with and rely upon our new Technology Services organization to align product and technology roadmaps and the allocation of development resources and investments to drive momentum in our key growth market segments. Our traditional pay TV business, like others in the industry, is challenged by declining subscribers. We need to make improvements in every area. To do so, we're bringing together all elements of our video business under a single leader to provide additional focus and improved execution. Our Video organization will now consist of DIRECTV commercial sales, product marketing, technology and operations, content, video installation technicians, contact centers and digital. And finally, driving our focus towards a simplified product portfolio and compelling value proposition for our customers includes sharpening our brand and its positioning in the market. How we market and advertise our brand, our products, our network and our services must be tighter aligned for us to realize our full potential. Through a single Brand and Advertising organization serving our consumer and business segments, this unified team will create and convey our new consumer value proposition, which you will hear more about when we roll it out this year. In addition, the team will be responsible for all media buys, creative services, marketing analytics, and support for business unit marketing programs. These are significant changes designed to put a renewed focus on our core product strengths, speed decision making, increase accountability, improve the customer experience and position us for ongoing success in a very competitive environment.
My operating team that will lead these efforts includes:
Thaddeus Arroyo, Chief Executive Officer – AT&T Consumer Anne Chow, Chief Executive Officer – AT&T Business Fiona Carter, Chief Brand and Advertising Officer Susan Johnson, Executive Vice President – Global Connections and Supply Chain Sabrina Sanders, Senior Vice President and Chief Strategy Officer Scott Mair, President – AT&T Network Engineering and Operations Jeremy Legg, joins ACC as Chief Technology Officer – AT&T Technology Services (formerly CTO of WarnerMedia) Our trusted Finance, HR and Legal partners will continue to support ACC, but they will move to their respective staff support organizations at the AT&T Corporate level, as we have already done with our External & Legislative Affairs and Corporate Communications teams. We have operated in this model with much success in prior years. This will allow us to eliminate unnecessary duplication and layers between corporate and operating groups, improve our effectiveness and speed up our decision making as one team to compete in the market. Organizational announcements for AT&T Corporate staff support functions will be made soon.
Consolidating teams, focusing on growth areas, simplifying product portfolios and responding to changes in customer demand also means we will be reducing our workforce in the coming weeks and months. The economic impact of the COVID-19 pandemic is also a factor.
These reductions will be targeted, but sizable. Though most employees won't be affected, the cuts will impact executives, managers and bargained-for employees. We're also significantly reducing non-payroll workers, the vast majority of which are outside the United States.
For management surpluses, we will institute a new 14-day exit window in most cases because there will be a limited number of alternative internal roles. We want to encourage those impacted to focus their efforts fully on finding their next role outside of AT&T, as soon as possible.
With every action, we will be thoughtful in our planning for every impacted employee. To support those who are leaving, we will extend severance, outplacement services and company-provided healthcare coverage of up to 6 months for eligible employees.
We will communicate which jobs are being eliminated in the coming weeks. Because these changes impact people, they are difficult decisions to make. But they are absolutely necessary for our long-term success as a company that is winning in the market and delivering great products, value and service to customers.
Our plans can be summarized as — Keep it Simple, Serve and Delight and Save to Grow. Transforming our business is not a one-and-done exercise. It will be a continuous process. We have a lot to do and we'll need everyone's best every day to make it happen.
Thank you for all you do.
Jeff McElfresh CEO, AT&T Communications
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