AT&T CEO declares end of workplace loyalty, mandates office return
TEXAS, UNITED STATES — AT&T CEO John Stankey has gone viral after openly declaring that employee loyalty is no longer part of the company’s “employment deal.”
“Some of you may have started your tour with this company expecting an ’employment deal’ rooted in loyalty,” Stankey wrote in a memo obtained by Business Insider. “We have consciously shifted away from some of these elements.”
AT&T redefines workplace contract
Stankey’s 2,500-word memo to managers was in response to a staff engagement survey about a five-day return-to-office mandate.
It marks one of the clearest admissions yet by a Fortune 500 CEO that the so-called “psychological contract” — a tacit understanding that companies will take care of loyal employees in exchange for long-term commitment — no longer applies.
Stankey asserts that employees should not anticipate promotions solely based on tenure or the ability to work remotely. Instead, he promises only a transparent career path, functional office facilities, and the tools necessary to do the job.
“He isn’t creating a new psychological contract — he’s just ending the old one,” said Denise Rousseau, a Carnegie Mellon professor who pioneered the concept.
For many, the memo signals the end of an era when companies like AT&T offered cradle-to-grave job security and benefits.
Memo draws on military rhetoric, sparks criticism
Critics have praised Stankey’s memo for its honesty, yet they argue it leaves little room for employee concerns.
In one section, Stankey relayed a quote from an army general sometimes considered a veiled threat: “If you dislike change, you’re going to dislike irrelevance even more.”
According to organizational experts, managing by fear might boost productivity in the short term, but it risks pushing out the company’s top performers and stifling innovation over time.
Stankey’s hardline approach reflects a broader corporate trend as leaders from tech giants like Meta and Uber publicly distance themselves from employee-centric policies.
Some experts warn that this shift makes corporate workplaces less motivating and risks damaging engagement and creativity when companies need them most.
