T-Mobile To Cut 5,000 Jobs, 7 Percent Of Workforce

Posted August 28, 2023

T-Mobile US Inc. CEO Mike Sievert informed the wireless carrier’s employees that the company will be laying off close to 5,000 workers, in a memo sent last week.

The layoffs would account for nearly 7 percent of the company’s workforce. Layoffs are planned to take effect in the coming weeks, according to Sievert.

The news of layoffs was incited due to ongoing costs of customer retention rates increasing and follows the trend of major tech companies such as Google, Microsoft and Amazon conducting similar layoffs this year. Sievert said the cuts would primarily affect redundant roles held in the company’s corporate and back-office positions and would not affect retail and customer service jobs.

“Today’s changes are all about getting us efficiently focused on a finite set of winning strategies, so that we can continue to out-pace our competitors and have the financial capability to deliver a differentiated network and customer experience to a continually growing customer base, while simultaneously meeting our obligations to our shareholders,” Sievert said.

Laid-off employees will receive severance payments based on tenure, 60 days minimum of transition leave, career transition services and other benefits, according to the memo.

T-Mobile shares were down 2% in afternoon trading following the announcement.