2023-08-24 16:39:18
T-Mobile US Implements Workforce Reductions
T-Mobile US is making changes to its workforce, with CEO Mike Sievert announcing plans to reduce staff by around 7 percent. The modifications aim to enhance the company's operating model and streamline operations.
Get a Free Speed Boost on Your Internet Connection: The One Surprising Trick Virgin Media Users Need to Try NowStreamlining for Efficiency
Sievert informed T-Mobile employees about the reduction in an email, which was later revealed through a Securities and Exchange Commission filing. The plan includes cutting nearly 5,000 positions, primarily in corporate and back-office roles, as well as some technology jobs. The layoff process is expected to begin this week and continue over the next five weeks.
"The retail and consumer care experts who take care of our customers will not be impacted," Sievert assured.
Is your Wi-Fi speed being murdered? The common mistake all BT broadband users must check todayT-Mobile's CEO also stated that once this process is complete, he does not foresee any significant company-wide reductions in the near future. He explained that the cuts would mainly affect duplicate roles or those that do not align with the company's current priorities or evolving systems and processes.
Cost of Customer Attraction
While T-Mobile has experienced success in attracting new phone customers, the customer acquisition strategy has had its challenges. The cost to attract and retain customers has significantly increased in recent quarters, as acknowledged by Sievert.
A Disturbing Bug in a Popular Android App Has Led Google to Take Drastic Action: Check Your Phone Now!T-Mobile estimates that it will incur a pre-tax charge of approximately £450 million in the current quarter due to the workforce reductions. However, the company affirmed its full-year guidance despite this expense.
Behind Target
According to investment platform Macrotrends, T-Mobile had 71,000 employees by the end of 2022, reflecting a 5.3 percent decrease from 2021. Recon Analytics analyst Roger Entner noted that the layoffs are a result of T-Mobile's customer acquisition strategy. He explained that T-Mobile's aggressive move into network virtualisation and the deployment of a standalone 5G core have enabled the company to reduce staff numbers. Network virtualisation, which involves automation, has led to job cuts throughout the industry.
Phones LTD Offers Samsung S23 Ultra EE Deals with Complimentary Galaxy Watch5T-Mobile and Sprint, which merged in 2020, previously made job creation pledges. However, Entner pointed out that even before the recent announcement, T-Mobile was approximately 9,000 staff behind its goals.
Thank you for reading our article. To stay updated on more telecom news and industry insights, please visit our Home page. You can also subscribe to our Telegram channel to receive similar news.
Discover the Samsung S23 Ultra EE Deals with Phones LTD: Don't Miss the Chance to Receive a Complimentary Galaxy Watch5!If you would like to know other articles similar to What is T-Mobile US planning? Major workforce cut in the works updated this year 2024 you can visit the category Breaking Tech News.
Leave a Reply