Profits just keep rolling in at T-Mobile US. So only thing to do is axe 5,000 workers
(2023/08/25)
- Reference: 1692991027
- News link: https://www.theregister.co.uk/2023/08/25/t_mobile_layoffs_5000/
- Source link:
T-Mobile US will lay off roughly 5,000 employees, or about seven percent of its workforce, over the next five weeks, the wireless carrier revealed in a recent regulatory filing.
In a letter to workers, included in the filing
"We have zero intention of being a faceless – or heartless – company in a situation that is already difficult," he added.
[2]
The layoffs come just weeks after the Un-carrier reported
[4]
[5]
Thanks for helping us turn a profit this year; now there's the door.
According to the letter, the layoffs will primarily hit workers in corporate, back-office, and technology roles. Retail and customer service workers won't be impacted by the cuts, it's said.
[6]
"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 explained.
[7]SpaceX, T-Mobile US phone service will interfere with ours, claims rival
[8]IBM sells off cloud business – yes, we mean Weather.com
[9]Softbank snaps up Vision Fund's stake in Arm ahead of IPO
[10]Lawsuit: We've got the stats to prove Twitter ax fell unfairly on older, female engineers
T-Mobile US says workers will be offered "competitive severance payments based on tenure," in addition to at least 60 days of transition leave. While the reduction in headcount is intended to cut costs long term, they'll cost the telco about $450 million in pre-tax charges during the third-quarter of this year, according to the biz.
In addition to job cuts, the carrier is reorganizing its management. "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," Sievert said. ®
Get our [11]Tech Resources
[1] https://d18rn0p25nwr6d.cloudfront.net/CIK-0001283699/4d27043d-4877-40a8-934a-6af21562f40a.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://s29.q4cdn.com/310188824/files/doc_financials/2023/q2/Q2-2023-Earnings-Release-vFinal.pdf
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
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[7] https://www.theregister.com/2023/08/23/spacex_counter_omnispace/
[8] https://www.theregister.com/2023/08/22/ibm_weather_company/
[9] https://www.theregister.com/2023/08/18/softbank_snaps_up_vision_funds/
[10] https://www.theregister.com/2023/08/10/twitter_sued_stats_discrimination/
[11] https://whitepapers.theregister.com/
In a letter to workers, included in the filing
[1]PDF
, CEO Mike Sievert said the cuts were "NOT about foisting more work on fewer people," but rather "optimizing every dollar, so it can be used to deliver a better network, a better value, and a better experience for customers," adding that retaining customers had become more expensive of late."We have zero intention of being a faceless – or heartless – company in a situation that is already difficult," he added.
[2]
The layoffs come just weeks after the Un-carrier reported
[3]PDF
profits of $2.2 billion over its last reported 90 days trading, up from a $108 million loss the year prior. T-Mobile US also recorded a $1.9 billion profit in the quarter before. Sievert said the job cuts should be the last "widespread company reduction" for the foreseeable future.[4]
[5]
Thanks for helping us turn a profit this year; now there's the door.
According to the letter, the layoffs will primarily hit workers in corporate, back-office, and technology roles. Retail and customer service workers won't be impacted by the cuts, it's said.
[6]
"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 explained.
[7]SpaceX, T-Mobile US phone service will interfere with ours, claims rival
[8]IBM sells off cloud business – yes, we mean Weather.com
[9]Softbank snaps up Vision Fund's stake in Arm ahead of IPO
[10]Lawsuit: We've got the stats to prove Twitter ax fell unfairly on older, female engineers
T-Mobile US says workers will be offered "competitive severance payments based on tenure," in addition to at least 60 days of transition leave. While the reduction in headcount is intended to cut costs long term, they'll cost the telco about $450 million in pre-tax charges during the third-quarter of this year, according to the biz.
In addition to job cuts, the carrier is reorganizing its management. "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," Sievert said. ®
Get our [11]Tech Resources
[1] https://d18rn0p25nwr6d.cloudfront.net/CIK-0001283699/4d27043d-4877-40a8-934a-6af21562f40a.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://s29.q4cdn.com/310188824/files/doc_financials/2023/q2/Q2-2023-Earnings-Release-vFinal.pdf
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOkkhwpfULNKpTJt036bJQAAAw8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2023/08/23/spacex_counter_omnispace/
[8] https://www.theregister.com/2023/08/22/ibm_weather_company/
[9] https://www.theregister.com/2023/08/18/softbank_snaps_up_vision_funds/
[10] https://www.theregister.com/2023/08/10/twitter_sued_stats_discrimination/
[11] https://whitepapers.theregister.com/
Contagion
Everybody, including me, was worried that the deep rotting sickness possessing Sprint would infect T-Mobile after a merger. Despite that, T-Mobile seemed like a strong winner for a while. Prices were low, support was good, 5G coverage was excellent, and home internet works great for those without fiber service. My only problems were entirely phone related (I'm glaring at you, Sony).
Now prices are rocketing up on new plans, grandfathered plans are getting new footnotes about network priority, Tier 1 tech support has a 20 to 40 minute wait, and physical stores have 30 minute waits. And now layoffs. It's starting to smell like Sprint.