Connect with us

Hi, what are you looking for?

World

T-Mobile Announces Large-scale Job Cuts to Improve Efficiency

T-Mobile US

T-Mobile US, one of the country’s largest mobile phone service carriers, has announced plans to cut approximately 5,000 jobs or around 7% of its workforce. The job losses will take place over the next five weeks and will primarily affect corporate and back office roles, as well as some technology positions. Retail and customer service teams, however, will not be part of the cuts. According to CEO Michael Sievert, the affected roles are either duplicative or no longer fit with the company’s current priorities and changes.

Sievert attributed the decision to rising costs of attracting and retaining customers, stating that the company needs to “move at the speed of technology” by using artificial intelligence and other tools to meet customer needs and stay competitive. In addition, the company wants to get “efficiently focused on a finite set of winning strategies.” As a result, T-Mobile will book a pre-tax charge of around 450 million US dollars in the third quarter related to the job cuts.

T-Mobile US

Laid-off employees will receive severance payments based on tenure, 60 days minimum of transition leave, career transition services, and other benefits. This marks the latest in a string of mass job cuts across various industries, following similar actions by companies such as Google, Meta, Amazon, and Microsoft.

The Bellevue, Washington-based company became one of the country’s largest mobile phone service carriers in 2020 after buying rival Sprint. In May, T-Mobile also announced plans to acquire Mint Mobile, partly owned by actor Ryan Reynolds, in a cash-and-stock purchase worth up to 1.35 billion dollars. Despite the job cuts, T-Mobile reported a second-quarter profit of 2.22 billion dollars and posted total service revenues of 15.74 billion dollars. However, the company’s stock fell 2% in afternoon trading on Thursday following the announcement.

You May Also Like

Politics

Everyone anticipated it: the debate question regarding Bernie Sanders allegedly questioning whether a woman could win the presidency during a 2018 meeting with Elizabeth...

World

Canada has passed a new law, known as the Online News Act, which will require tech giants Google and Meta to pay media outlets...

Sports

Wrestling veteran Konnan recently shared his insights on Triple H’s role in managing WWE’s creative team, praising his approach. Following Vince McMahon’s step back...

Politics

A recent study has highlighted the stark difference in administrative costs between the U.S. and Canadian healthcare systems, revealing that the U.S. spent more...