In a significant move, AT&T’s CEO, John Stankey, has directly addressed employee feedback concerning the company’s recent shift from a hybrid work model to a stringent five-day return-to-office mandate. This decisive change, implemented in January, has stirred considerable discussion within the telecommunications giant, prompting Stankey to issue a comprehensive memo to managers outlining the rationale and expectations behind the new policy.

Stankey’s frank communication, exclusively obtained by Business Insider, signals a clear message to the workforce: employees are expected to align with the company’s evolving “market-based culture” or consider alternative career paths. This direct approach underscores the seriousness with which AT&T is pursuing its new operational framework, emphasizing commitment and performance in the dynamic industry landscape.

The CEO’s memo critically analyzed the results of a recent employee engagement survey, revealing a decline in self-reported engagement levels. Stankey candidly expressed that this outcome was “not surprising” given the extensive changes AT&T is currently navigating. He reiterated that a “self-directed, virtual, or hybrid work schedule” would be increasingly incompatible with the company’s strategic priorities and the culture it aims to cultivate.

AT&T’s transition has been multifaceted, impacting not only work schedules but also the foundational “employment deal” for its workforce. Stankey articulated a conscious pivot away from traditional norms of loyalty, tenure, and conformance, instead focusing on rewarding capability, contribution, and unwavering commitment. This shift aims to foster a more competitive and externally focused organizational environment, essential for success in technologically driven markets.

Amidst these changes, the company acknowledges employee concerns regarding workplace facilities and infrastructure. Stankey’s memo addressed the “right to expect to work in a professional, well-maintained, and functional facility,” assuring ongoing and future investments into office hubs. However, the mandate has created challenges, including reported difficulties with office space availability and parking, while rivals reportedly capitalized on AT&T’s shift to recruit talent interested in flexible schedules.

Stankey underscored the necessity of continuous disruption for a company with over a century of history to maintain its relevance. He challenged the notion of lamenting change, asserting that a willingness to evolve has been the bedrock of AT&T’s enduring success across various technological eras. This perspective reinforces the leadership’s conviction that adapting to new market demands is paramount, even if it entails significant internal restructuring.

The emphasis on in-person collaboration stems from the demanding nature of AT&T’s large-scale, challenging initiatives. Complex projects, such as fiber deployment, network modernization, and platform migrations, require seamless inter-departmental coordination. The company believes that predictable in-person presence significantly improves team execution, ensuring reliable support for employees and consistent collaboration with third-party partners.

The CEO’s communication also highlighted the importance of clear career opportunities and developmental paths within the company. Stankey indicated that the shift to centralized hub locations is a pivotal step towards achieving this, promoting teamwork, mentorship, and visibility that can better facilitate career advancement. He expects department leaders to consolidate complementary functions to streamline growth and development pathways.

Ultimately, while acknowledging the difficulties and potential unease associated with such a transformative period, Stankey expressed confidence in AT&T’s strategic direction. He affirmed that the current approach is vital for attracting and retaining customers, securing investor resources, and offering meaningful employment. The memo concludes by urging employees to take ownership and initiative, underscoring that collective success hinges on individual contributions.