T-Mobile US Inc. has revealed plans to cut almost 5,000 jobs, which accounts for nearly 7% of its workforce. The majority of the cuts will impact corporate and back-office roles, with some impact on technology positions as well. However, the company has made it clear that retail and customer-care positions will remain unaffected.
In a letter to employees, T-Mobile’s Chief Executive Mike Sievert stated that this reduction in workforce is not anticipated to be followed by any further widespread company reductions in the foreseeable future. Sievert acknowledges that attracting and retaining customers has become significantly more expensive in recent times. Despite T-Mobile’s efforts to outperform competitors and accelerate merger synergies, it has become apparent that simply doing everything faster is insufficient to meet changing customer expectations.
The purpose of these job cuts is to streamline operations and focus on a set of winning strategies that will ensure T-Mobile continues to outpace competitors. By doing so, the company aims to have the financial capability to deliver a differentiated network and customer experience to its continually growing customer base, while also meeting obligations to shareholders.
Affected employees will be notified by the end of September, as T-Mobile strives to treat each individual with respect and provide personal support during this challenging period.
Shares of T-Mobile experienced a slight decline of 0.4% in Thursday morning trading.