T-Mobile Inc. announced it would be cutting seven percent (roughly 5,000) of its staff as part of an effort to reel in company costs amid rising competition.
The 5,000 employees are said to be mostly corporate and back-office staff as well as some technology roles, T-Mobile claimed in a regulatory filing. Retail and consumer-care experts would not be impacted.
T-Mobile says it plans to cut 5,000 jobs https://t.co/FIxAUyDaCC
— CNBC Now (@CNBCnow) August 24, 2023
Rival carriers like AT&T and Verizon Communications have been offering lower-priced wireless plans as part of a bundle plan with internet and cable service. According to the Wall Street Journal, subscriber counts across the industry have slowed down in recent quarters after the pandemic.
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“Right now, our company is at a pivotal crossroads,” said Chief Executive Mike Sievert. “What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago.”
However, 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. “Today’s changes are all about getting us efficiently focused on a finite set of winning strategies.”
“What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” Sievert said.
Back in July, Bloomberg reported that T-Mobile topped profit estimates and raised its subscriber forecast for the year while Verizon and AT&T reported disappointing customer gains. AT&T has also been firing their employees, cutting more than 74,000 jobs, (32 percent of its staff) since June 2021.
Employees will receive “competitive severance packages” based on their positions, as well as accelerated stock vesting, access to career transition services and other benefits, Sievert told employees. He added that the company is not planning additional employee reductions in the near future.
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