T-Mobile has announced its intention to reduce its workforce by approximately 5,000 employees, constituting about 7% of its total staff, by September's end, according to an internal communication sent out by the company's CEO on Thursday.
The company's top executive, Mike Sievert, clarified in the email, which was also documented in a filing with the Securities and Exchange Commission, that the reductions would mostly affect corporate, tech, and back-office positions. He emphasized that roles in retail and customer interactions would remain untouched.
Sievert highlighted that the roles being affected are mostly "redundant or no longer in line with evolving systems, processes, and company objectives." Additionally, he assured that there aren’t plans for further layoffs in the near-term.
“In the face of such significant changes, which are somewhat uncharacteristic for T-Mobile, our approach is to confront challenging decisions head-on. The goal is to ensure our employees aren’t left in the dark about the company’s future direction,” stated Sievert.
“Hence, we aren’t anticipating any major workforce reductions in the foreseeable future.”
Explaining the rationale behind the restructuring, Sievert cited the augmented customer needs post T-Mobile’s 2020 merger with Sprint and the escalating expenses associated with customer acquisition and retention.
Sievert elaborated in his email, “The resources needed to secure and maintain our customer base have substantially increased in recent times. While we’ve managed to stay ahead by maximizing merger benefits and rapidly expanding our high-speed internet services, it's evident that merely accelerating our efforts isn't sufficient to meet the evolving expectations of our customers.”
This decision by T-Mobile is in line with a series of layoffs, particularly affecting the tech industry in recent times.