The Strategist

T-Mobile and AT&T began massive layoffs


06/22/2020 - 07:44



US telecom operator T-Mobile US began to cut jobs faster than planned after closing a merger with rival Sprint Corp.



Bill Feldberg
Bill Feldberg
T-Mobile said it plans to spend about $ 300 million more than originally expected on transaction costs, mainly related to the payment of termination benefits.

The company did not specify how many people would be downsized. At the end of 2019, the company was employing 53,000 people. As of early 2019, Sprint had 28,500 employees.

At the same time, T-Mobile CEO Mike Sievert said the company plans to hire 5,000 new jobs, including in retail and engineering, over the next 12 months.

"As part of this process, some employees who hold similar positions are invited to consider the possibility of changing their professional activities within the company, others will be supported in case of attempts to find a new job outside the company," he said.

T-Mobile’s competitor AT&T Inc. presented details of a plan to reduce several thousand employees as part of cost-cutting measures.

AT&T plans to reduce more than 3.4 thousand people in the coming weeks, writes The Wall Street Journal, citing the union Communications Workers of America, which represents the interests of a large number of employees. This figure does not take into account hundreds of jobs that could be cut as a result of store closures.

AT&T announced that it would implement “targeted, but large-scale reductions in the number of executives, managers and employees represented by the union.” The company is also closing a number of stores, accelerating the transition to online sales amid the coronavirus pandemic.

source: bloomberg.com