AT&T shares fall for a second straight session on Tuesday, company plans workforce cuts in Slovakia

AT&T Inc (T) said earlier this week that it intended to cut its headcount in Slovakia, since the coronavirus crisis has delivered a blow to customer demand.

According to a report by Reuters, Martin Horkavy, the chairman of trade union uniJA representing AT&T workers, claimed such a decision could affect as many as 300 jobs.

AT&T shares closed lower for a second consecutive trading session in New York on Tuesday. The stock went down 0.75% ($0.22) to $28.95, after touching an intraday low at $28.90 and an intraday high at $29.38.

Shares of AT&T Inc have risen 0.66% so far in 2021 compared with a 1.14% gain for the benchmark index, S&P 500 (SPX).

In 2020, AT&T Inc’s stock went down 26.41%, thus, it again underperformed the S&P 500, which registered a 16.26% gain.

AT&T Global Network Services Slovakia, which has maintained its presence in the European country for over 10 years, has nearly 2,800 employees there.

In a statement, the company said that it was attempting to “manage the impact on our people” from the job reductions, which were not only a result of the pandemic, but also part of previously announced initiatives.

“These actions align with our focus on growth areas along with lower customer demand for some legacy products and the economic impact and changed customer behaviors resulting from the COVID-19 pandemic,” a spokesperson for AT&T was quoted as saying by Reuters.

Analyst stock price forecast and recommendation

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $31.00, with a high estimate of $38.00 and a low estimate of $16.00. The median estimate represents a 7.08% upside compared to the closing price of $28.95 on January 19th.

The same media also reported that at least 17 out of 29 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 5 – as “Buy”. On the other hand, other 5 analysts had recommended selling the stock.