x

T-Mobile to Trim 5,000 Jobs in Drive for Efficiency Enhancement

By  Milcah  Tanimu

T-Mobile is implementing substantial workforce reductions, leading to the termination of thousands of employees’ positions, with the aim of streamlining operations and reinforcing its competitive stance within the wireless sector.

CEO Mike Sievert conveyed this downsizing initiative in an email announcement on Thursday. Over the next five weeks, T-Mobile’s workforce will see a reduction of nearly 5,000 employees. By the end of the following month, the company plans to complete notifications to all affected individuals. The details were disclosed through an email published on the Securities and Exchange Commission (SEC) website.

The layoffs are targeted mainly at corporate, back-office, and select technology-related roles. These eliminations are directed at positions that either duplicate other functions, are aligned with evolving systems or processes, or do not align with current company priorities, as noted by CEO Mike Sievert.

Sievert assured T-Mobile’s customer service front-line, encompassing retail and consumer care experts, will remain untouched by these layoffs.

As of the close of 2022, T-Mobile’s workforce included over 71,000 individuals in both full-time and part-time capacities. The impending layoffs will account for approximately 7% of the total headcount.

Sievert contextualized these changes as a means to focus on a defined set of successful strategies, which will enable the company to outpace competitors, meet growing customer demands, and fulfill shareholder obligations. He attributed part of these heightened customer demands to the increased competition brought about by the merger with Sprint, a deal valued at $26.5 billion.

The company expressed its intention to provide departing employees with competitive severance packages based on their tenure, along with a minimum of 60 days of transition leave. Additional benefits include continued tuition reimbursement, career transition services, and access to the T-Mobile alumni service discount.

T-Mobile anticipates an associated pre-tax charge of approximately $450 million due to these workforce reductions, which will be accounted for in the third quarter.

The wireless carrier previously revised its projections for core adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), along with its postpaid net customer additions, during its second-quarter financial report in late July.

T-Mobile’s stock price experienced a modest drop of nearly 2% from its morning opening as of Thursday afternoon.

Hot this week

Oborevwori Commends NYSC Members in Delta for Resilience and Dedication

By Anne Azuka, Issele-UkuGovernor Sheriff Oborevwori of Delta State...

Arsenal Keeper David Raya Signs Improved Deal After Stellar Form

The Spanish shot-stopper, who joined Arsenal permanently from Brentford...

Amupitan gets nod to head INEC

The National Council of State has approved the nomination...

Governor Ododo Congratulates Prof. Joash Amupitan SAN on His Appointment as INEC Chairman

By Noah Ocheni, LokojaKogi State Governor, Alhaji Ahmed Usman...

Super Eagles Draw Gabon in 2026 World Cup Play-off Semi-final

Nigeria will face Gabon in the semi-finals of the...

Dogara Hails Tinubu’s Agenda, Urges Youth Action**

Former Speaker of the House of Representatives, Rt. Hon....

Kogi Govt Partners L-PRES to Boost Livestock Productivity

By Noah Ocheni, LokojaThe Kogi State Government, in collaboration...

Oborevwori Commends NYSC Members in Delta for Resilience and Dedication

By Anne Azuka, Issele-UkuGovernor Sheriff Oborevwori of Delta State...

FUL VC Applauds Prof. Olu Obafemi for Using Literature as a Tool for Social Reform

By Noah Ocheni, LokojaThe Vice Chancellor of the Federal...

NYSC members in Delta commended for resilience, commitment, duty

By Anne AzukaMembers of the National Youths Service...

FG Encourages Youths On Voter Registration

By Wilfred FrancisAs the voter registration exercise continues, the...

Related Articles

Popular Categories

spot_imgspot_img