T-Mobile laying off 5,000 employees, citing rising costs


On the heels of announcing its new Go5G Next plan that pays for half of customers’ yearly smartphone upgrades, T-Mobile has announced a mass layoff that will cut about 5,000 employees. The move comes as the Uncarrier says it’s become “materially more expensive” to attract and retain customers in recent months.

T-Mobile has made impressive progress over the last few years since its merger with Sprint in rolling out its 5G network, improving coverage, and more. It’s consistently ranking ahead of Verizon and AT&T in independent studies for speed, reliability, and availability.

The Uncarrier also offers more affordable pricing and more extras than Verizon and AT&T to make it appealing to switch and stay. And it’s also been the fastest carrier to build out 5G home internet – which has availability to more than 50 million homes. But all of those moves have their costs.

T-Mobile CEO Mike Sievert shared today that the company needs to cut expenses by laying off 7% of its employees (via Bloomberg). That amounts to roughly 5,000 jobs.

Chief Executive Officer Mike Sievert said in a letter to employees that the cost of attracting and retaining customers is “materially more expensive than it was just a few quarters ago.” Building out the company’s high-speed internet business and efforts in other areas “is not enough to deliver on these changing customer expectations going forward,” he said.

The layoffs were foreshadowed by the departure of T-Mobile exec Marcus East which kicked off an internal restructuring earlier this month.

T-Mobile detailed that the layoffs will mostly affect “corporate and back-office” roles along with some technology positions. Sievert commented that after this wave of layoffs, he “doesn’t anticipate any additional widespread company reductions in the foreseeable future.”

As noted by Bloomberg, cutting costs with the layoffs will allow T-Mobile to continue with aggressive pricing and device promotions as the iPhone 15 lineup is set to be announced and we head into the holidays.

FTC: We use income earning auto affiliate links. More.



Source link

IRON MOUNTAIN | IT