AT&T is permanently closing 250 retail stores and also laying off 3,400 technician and clerical jobs, according to the Communications Workers of America. 

On Tuesday, the carrier notified the workers union about the job cuts, which will occur over the next several weeks. AT&T told PCMag the coming layoffs are due to “lower customer demand for some legacy products,” and the economic impact from COVID-19. 

“With more customers shopping online, we are closing some retail stores to reflect our customers’ shopping practices. While these plans are not new, they have been accelerated by the COVID-19 pandemic,” AT&T said in a statement. 

AT&T neither confirmed nor denied the number of store closures, or job cuts. But according to the Communications Workers of America, the 250 stores to be closed will also occur at Cricket Wireless, which AT&T owns. 

Back in 2018, AT&T said it had over 5,300 branded stores with plans to open an additional 1,000. However, last year the carrier began cutting billions of dollars in costs, which has worried the Communications Workers of America. According to the union, the carrier has shed more than 41,000 workers over the last three years, despite receiving a tax break from the Trump administration. 

“These cuts come as Americans have become more dependent than ever on reliable communications services and the COVID-19 crisis has revealed significant gaps in broadband availability, especially in rural areas,” the union said of the recent round of layoffs. 

“If we are in a war to keep our economy going during this crisis, why is AT&T dismissing the troops?” added Communications Workers of America President Chris Shelton in a statement.

However, AT&T said it worked with the union to provide favorable severance packages. “Reducing our workforce is a difficult decision that we don’t take lightly. For employees who are leaving as part of these changes, we’re offering severance pay and company-provided healthcare coverage for up to 6 months for eligible employees,” the carrier added.

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