John Lynch/Business Insider
AT&T's return-to-office mandate is set to get more strict in the new year.
The Dallas-based telecom giant confirmed to Business Insider that it is requiring all office employees to work on-site five days a week starting in January. The change follows about a year of AT&T accommodating a hybrid schedule in its widely publicized office push.
In the summer of 2023, CEO John Stankey said workers would be required to report at least three days a week to one of nine corporate hubs: Dallas; Atlanta; Los Angeles; San Ramon, CA; Seattle; St. Louis; Washington; Middletown, NJ; and Bedminster, NJ. The company previously supported more than 300 offices across the US.
Thousands of affected employees faced the choice of relocating or finding a new job, with some 18,000 management employees opting to return to one of the hubs, according to AT&T's proxy statement this year.
Now, some workers who may have gotten used to hybrid schedules will soon be required to log eight hours a day, five days a week at the office.
"The majority of our employees and leaders never stopped working on location for the full work week — including during the pandemic," a company spokesperson told Business Insider.
In multiple social media posts, Reddit users on the AT&T subreddit voiced concerns about whether the offices have enough capacity for employees.
AT&T told BI it is updating its facilities amid the policy change.
"As we continue to evolve our model, we are enhancing our facilities and workspaces, adapting our benefits programs, and incorporating best practices to ensure our employees are best equipped to serve our customers," the spokesperson said.
This week, BI reported that Amazon was delaying its 5-days-in-office mandate for some employees due to workspace shortages at some locations. While most locations are on track to be ready on January 2, internal documents indicated some employees will be delayed until as late as May.
"We continue to believe that the advantages of being together in the office are significant," Amazon CEO Andy Jassy told employees in a September memo announcing that employees were expected to be in the office every day of the week.
AT&T is also expanding its footprint in Atlanta, where the company signed a lease earlier this year on two office buildings it had previously vacated, CoStar reported.
Shares of AT&T are up roughly 40% in 2024 so far, outperforming the S&P 500's 27% return in the period. The telecom giant reported mixed third-quarter results in October, adding more new wireless subscribers than Wall Street expected but coming up slightly short for overall revenue as the land-line business declines.
The RTO push comes as some big-company CEOs say they're frustrated with hybrid work setups. Many job seekers have also found that it's getting harder to find a remote job or one that's hybrid.
At the same time, some employers appear to have settled into a tentative truce over how often workers are required to show up at the office.
In an October survey of nearly 7,500 organizations globally, the recruiting company Korn Ferry found that the share of employers requiring workers to report to the office five days a week had dropped to 43% from 89% before the pandemic ushered in a global experiment in remote work.
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