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| Current and former CEOs weighed in on AT&T chief John Stankey's memo to managers and the challenges of creating lasting cultural change. Jon Feingersh/Getty Images |
When AT&T CEO John Stankey sent out a 2,500-word internal memo urging managers to align with the company’s “dynamic, customer-facing” future or find another job he probably expected a strong reaction. And that’s exactly what he got.
The memo quickly went viral, drawing praise from some business leaders who called it “a bold statement,” while others criticized the tone and worried it could backfire. Some even speculated that Stankey’s real goal was to push out employees unwilling to adapt.
local press spoke with a range of executives past and present to unpack what the memo means for corporate culture, workplace loyalty, and leadership in a time when employee expectations are shifting dramatically.
A Shift in the Employee – Employer Contract
Bill George, former CEO of Medtronic and executive education fellow at Harvard Business School, said the message reflects a reality that many companies are still reluctant to admit.
“AT&T was once one of the world’s most paternalistic firms,” George said. “But the world has changed. Stankey is telling employees that we live in a very competitive world, and we have to focus on customers.”
For decades, employees were motivated by the implicit promise of loyalty from their employers lifetime job security, pensions, and a sense of belonging. That psychological contract has been eroding for years, but few CEOs have been as explicit about it as Stankey.
local press’s chief correspondent Aki Ito put it bluntly:
“The days of lifetime job security and pensions are long gone. At least Stankey is clear: he won’t even pretend to be loyal to his workers.”
Still, George argues loyalty isn’t dead it’s evolving. Companies, he said, should be loyal to current performers and committed employees, not those who have grown complacent or disengaged.
For millennials and Gen Z workers, the concept of blind loyalty feels outdated. These generations have faced layoffs, recessions, political divides, and a global pandemic early in their careers. As Jennifer Dulski, CEO of Rising Team and Stanford lecturer, explained:
“Younger workers came of age in a time when nothing in the world could be counted on. Being blindly loyal to anything doesn’t make sense.”
The Tone: Direct or Detrimental?
The bluntness of Stankey’s memo was striking. Doug Dennerline, CEO of Betterworks and a former Cisco executive, suggested the intent might have been deliberately provocative.
“He’s expecting to get turnover from this, and must want it,” Dennerline said.
Dulski agreed that acknowledging employee survey results was a step in the right direction. But she worried the memo’s framing emphasizing employees who weren’t aligned could alienate even high performers.
“The memo starts from a place of lack of trust,” she said.
George shared similar concerns, noting that the language wasn’t “thoughtful or empowering” enough. James D. White, former CEO of Jamba Juice, added that blunt communication only works when employees already feel respected:
“If they don’t, a message this firm can risk disengagement.”
Cultural Transformation in a Legacy Giant
Cultural change is hard in any company, but it’s particularly daunting in an organization as large and old as AT&T. Dulski emphasized the challenge:
“It is hard, especially for large organizations, to do transformation at scale.”
True transformation, experts agree, requires more than a strongly worded memo. George recommended that Stankey personally visit offices, meet with employees face-to-face, and engage in real dialogue about customer concerns.
“Customer focus doesn’t come from the top,” George said. “It can be guided from the top, but it happens in one-to-one interactions.”
What Leaders Can Learn from the Memo
Whether you see Stankey’s memo as bold leadership or risky communication, it provides a case study for executives everywhere:
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Be transparent about expectations. Employees want honesty, even if it’s uncomfortable.
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Balance directness with empathy. Tough messages can inspire, but tone matters.
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Recognize generational shifts. Younger employees have different views on loyalty and career security.
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Follow words with actions. True culture change happens through daily behaviors, not memos.
Ultimately, the debate surrounding AT&T’s internal memo reflects the broader tug-of-war between corporate demands and employee expectations. For some, Stankey’s clarity was refreshing. For others, the tone risked alienation.
What’s clear is that in today’s workplace, leadership requires not just bold statements, but also consistent actions that back them up.
