We are just outside the 3-year mark since T-Mobile and Sprint merged, creating a US wireless space with only 3 major players, and the changes are incoming. Not only did T-Mobile introduce a really expensive new plan this week, they are now cutting thousands of jobs over the coming weeks.
In a letter sent to employees today, T-Mobile CEO Mike Sievert shared reasoning for the cuts and who will be impacted. With the company cutting 5,000 jobs, they are saying goodbye to roughly 7% of their workforce.
Sievert explains that the current US wireless situation has made it more expensive than ever to try and attract and keep new customers, so they need to be more efficient. They have seen success as the Uncarrier, but whatever is happening to the changing of customer expectations is forcing them to make cuts because they want to have “the financial capability to deliver a differentiated network and customer experience.”
Of course, cutting thousands of jobs probably means fewer employees doing more work, but Sievert suggests he doesn’t want that. He believes they can streamline all the things and reduce complexity, empower faster decision making, and optimize every dollar. Because again, this is “NOT about foisting more work on fewer people.” Mmmhmmm.
The group that is impacted by these cuts includes folks “primarily in corporate and back-office” jobs, as well as “some technology roles.” T-Mobile suggests most are roles that are duplicative to other roles. Retail and customer care experts are apparently not seeing a reduction in staff. T-Mobile also says they “don’t envision any additional widespread company reductions again in the foreseeable future.”
There will be severance payments for those laid off, as well as the continuation of other benefits.
You can read the full letter from T-Mobile’s CEO here.