T-Mobile is expected to lay off 5,000 employees in the coming weeks.
The cuts represent about 7% of the wireless company’s workforce.
CEO Michael Sievert told employees in an email that the company is at a crossroads and workers around the U.S. would be affected, primarily those in corporate, administrative and technology roles. Retail and customer service workers will not be subjected to the cuts, he stated.
“This is a large change, and an unusual one for our company,” the exec wrote. “Because of this, we do not envision making additional large-scale reductions across the company again in the foreseeable future.”
Sievert also pointed to the increased cost to “attract and retain customers” as a reason for the cuts.
“It is clear that doing everything we are doing and just doing it faster is not enough to deliver on these changing customer expectations going forward,” he wrote. “Today’s changes are all about getting us efficiently focused on a finite set of winning strategies.”
The company said those who are laid off will receive severance, 60 days’ notice and other benefits.
The cuts are expected to begin in the next five weeks.
T-Mobile, which is based in Bellevue, Wash., bought rival Sprint in 2020 and is in the process of acquiring Mint Mobile, the brand partly owned by actor Ryan Reynolds, for $1.35 billion.
However, in recent years, cable companies have begun offering lower cost wireless service if customers bundle cable and internet service.
Since last year, layoff announcements have hit companies including Disney, Google, Meta, Amazon, Zoom, Yahoo (which is owned by Verizon), Reddit, Microsoft and Twitter (now X).
With News Wire Services
