Profits just keep rolling in at T-Mobile US. So only thing to do is axe 5,000 workers

From Un-carrier to Un-employed

T-Mobile US will lay off roughly 5,000 employees, or about seven percent of its workforce, over the next five weeks, the wireless carrier revealed in a recent regulatory filing.

In a letter to workers, included in the filing [PDF], CEO Mike Sievert said the cuts were "NOT about foisting more work on fewer people," but rather "optimizing every dollar, so it can be used to deliver a better network, a better value, and a better experience for customers," adding that retaining customers had become more expensive of late.

"We have zero intention of being a faceless – or heartless – company in a situation that is already difficult," he added.

The layoffs come just weeks after the Un-carrier reported [PDF] profits of $2.2 billion over its last reported 90 days trading, up from a $108 million loss the year prior. T-Mobile US also recorded a $1.9 billion profit in the quarter before. Sievert said the job cuts should be the last "widespread company reduction" for the foreseeable future.

Thanks for helping us turn a profit this year; now there's the door.

According to the letter, the layoffs will primarily hit workers in corporate, back-office, and technology roles. Retail and customer service workers won't be impacted by the cuts, it's said.

"Impacted roles are primarily duplicative to other roles, or may be aligned to systems or processes that are changing, or may not fit with our current company priorities," Sievert explained.

T-Mobile US says workers will be offered "competitive severance payments based on tenure," in addition to at least 60 days of transition leave. While the reduction in headcount is intended to cut costs long term, they'll cost the telco about $450 million in pre-tax charges during the third-quarter of this year, according to the biz.

In addition to job cuts, the carrier is reorganizing its management. "We need to move at the speed of technology using data, AI, and other tools to deliver simplified digital experiences specifically curated for every customer," Sievert said. ®

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