Yesterday AT&T promised 7000 jobs, today it sacks 700 just in time for Christmas

The much publicised tax reforms by President Trump saw AT&T state it would invest to create jobs for Americans and now it has handed pink-slips to 700 DirecTV home installers.

According to The New York Post, due to the company’s more stringent focus on its DirecTV Now streaming business, the workers have been handed their marching orders. The timing could be better considering the news came to light a matter of days after AT&T put itself forward as an engine for growth and job creation.

“Merry Christmas, here’s your pink slip,” one worker is quoted. “It’s affecting all states from Florida to California.”

And while there might be a promise of increased profits at AT&T, this is hardly going to be an consolation for those who work in the telcos traditional TV business. Cord cutters are gathering steam meaning this is unlikely to be the last we hear of job cuts.

Following the news the tax legislation had been passed, AT&T was of course on its high-horse. Plans were to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T US employees. The team even quoted statistics that for every $1 billion invested in the US, 7000 jobs are created.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

These numbers will offer little comfort to those who have been let go.

That said, Stephenson certainly has something to be buoyant about. The new tax rules creates a single 21% corporate rate, effective in 2018, certainly a lot lower than what AT&T has paid in the past. Perhaps the extra bonus Stephenson will get will help him forgot the 700.