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T-Mobile announced Thursday they would lay off 5,000 employees, about 7% of their workforce.
In an email sent to employees − which was disclosed in the company’s 8-K form to the U.S. Securities and Exchange Commission −T Mobile President and SEO Mike Sievert, wrote that the cuts would occur nationwide over the next five weeks and impact employees in the corporate, back-office, and technology roles.
The cuts would not impact retail and consumer care experts, he said, adding that he doesn’t “envision any additional widespread company reductions again in the foreseeable future.”
Cuts to improve “efficiency”
Sievert’s email noted that as customers’ demands increase, attracting and retaining them has become “materially more expensive than it was just a few quarters ago.” The company’s goal is to increase its financial capability and meet their obligations to shareholders.
The roles being eliminated are “primarily duplicative” or may not fit with the company’s current priorities, Sievert said, while some areas of the business will become more centralized to “improve efficiency and effectiveness and save costs.”
“We need to move at the speed of technology, using data, AI and other tools, to deliver simplified digital experiences specifically curated for every customer,” he said in the email to employees.
Layoffs come after Sprint merger which promised more jobs
In April 2020, T-Mobile and Sprint Corporation, merged to create a new T-Mobile, with the goal of giving customers access to faster speeds and better service at lower prices.
Just a year prior, then CEO John Legere touted that the merger would create more new, high quality, high paying jobs from day one.
“That’s not just a promise. That’s not just a commitment. It’s a fact,” Legere wrote on T-Mobile’s website.
He added that the company would invest $40 billion in network and business expansion for the first three years to build a nationwide 5G infrastructure, planned to support new customers by building on customer care resources, and grow their retail footprint, especially in rural area.
Legere added that it would create about 5,600 new customer care jobs by 2021, and they would employ more than 7,500 care professionals by 2024 after the merger.
Prior to the merger, in July 2019, multiple State Attorneys General filed a lawsuit to stop the T-Mobile and Sprint merger. New York State Attorney General Letitia Stein said the merger would “cause irreparable harm to mobile subscribers nationwide” by cutting off affordable, reliable wireless service, for millions of Americans.
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