T-Mobile announced today that it is planning to reduce its workforce by about 5,000 jobs.
Mike Sievert wrote to all employees that the cuts will impact employees in locations across the country, primarily in corporate and back-office, and some technology roles. This round of cuts will not affect retail and consumer care employees.
“After this process is complete, I do not envision any additional widespread company reductions again in the foreseeable future,” wrote Sievert. “Impacted roles are primarily duplicative to other roles, or may be aligned to systems or processes that are changing, or may not fit with our current company priorities.”
Sievert continued,
“In a company as successful as ours, the time to challenge the status quo and write the next chapter, is WHILE we are still successful. That’s how we sustain it. 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.”
When T-Mobile’s then CEO John Legere was lobbying hard for the purchase of Sprint a few years ago, he promised that the combined company would create jobs.
Before today, T-Mobile’s combined workforce with the Sprint employees was already down 9,000. “The merger did not add jobs,” Roger Enter said.
In the letter, Sievert said the workforce reduction “is about re-prioritizing our work and doing it differently, NOT about foisting more work on fewer people.”
In its 8K filing, T-Mobile estimated that it will incur a pre-tax charge of ~$450 million in the third quarter of 2023 related to the workforce reduction.
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