AT&T defended a plan to withdraw from 320 corporate-owned retail locations in the coming months, arguing the Covid-19 (coronavirus) pandemic accelerated a trend toward online transactions.

The move builds on the previously announced shuttering of 250 stores earlier this year. AT&T had approximately 2,100 corporate stores as of end-June, data from Wave7 Research showed.

While some of the stores in the latest batch will close outright, an operator representative told Mobile World Live others will remain in operation as AT&T authorised retailers under independent ownership. Union-represented employees at affected locations will be offered other positions within AT&T, either at other corporate-owned stores or in customer support roles, the representative added.

The Communications Workers of America (CWA) union estimated the move will impact more than 1,600 employees.

CWA accused the operator of “ignoring the needs of its employees and customers” in order to appease activist investor Elliott Management and other shareholders. But the AT&T representative contended the move is part of a previously announced business transformation, which “includes adjusting our retail presence to reflect our customers’ shopping practices”.

In August, AT&T CFO John Stephens told investors the pandemic kicked this initiative into high gear, noting it provided a “different opportunity to make decisions and sometimes force decisions to be made“.

AT&T CEO (then-COO) John Stankey said in April streamlining of its field services, retail and distribution operations was expected to generate $1 billion in savings.