I think we are in for more fun. The C-suite can't cut employees fast enough, so they go for the big cost.
6 replies (most recent on top)
For those of you staying this year, you should be asking what they will be cutting next year? Remember, they knew they were cutting both Pre and Post Medicare Supplement but only told about the first in 2020. Just this week, McFresh said that investors were happy with ATT but he knew two days later they were going to cut the dividend. How many more examples do you need?
ATT's pathetic showing in the recent C band spectrum auction might be a clue:
- Verizon: $45.455 billion for 3,511 licenses in 406 PEAs
- AT&T: $23.407 billion for 1,621 licenses in 406 PEAs
- T-Mobile US: $9.336 billion for 142 licenses in 72 PEAs
- US Cellular: $1.283 billion for 252 licenses in 99 PEAs
TMO doesn't really count because they are deploying 5G using 2,5 Ghz spectrum, Obviously VZ had a lot more money to spend that did ATT (because of the debt load), and so VZ crushed it. This is not good news for ATT's wireless business over the next few years. This could have made bondholders and ratings agencies nervous, and ATT in turn might have gotten worried about a downgrade of their debt rating, which would really be disastrous given the amount of debt they are carrying, That's the kind of thing that may be behind all the desperation moves lately (DTV, TW, dividend cut, retiree bennie cut, etc).
When a company cuts the dividend, how long does that company last?
let the next round of outsourcing IT begin. I suspect Jeremy Legg is no around much longer
The debt load and interest payments!!
Filing bankrupsy, losing the HMF'er In Charge Job and the loss of $20M+ a year+ bennies until that work of art reaches 65.
Nobody else in their right mind would hire him. Not even trashtruck driver or dog catcher