T-Mobile is laying off “a little under” 7 percent of its workforce, affecting about 5,000 roles at the company. The move will mostly impact workers in corporate, back-office, and technology roles, with those in retail or customer care positions remaining unaffected.
“What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” writes CEO Mike Sievert in a memo to employees, adding that its existing strategies are not enough to “deliver on these changing customer expectations going forward.” In addition to the layoffs, Sievert says the company will need to work toward “re-prioritizing” its work and “optimizing every dollar” as it deals with rising costs.
T-Mobile doesn’t expect any additional companywide layoffs for the “foreseeable future,” Sievert notes. The carrier will complete layoff notifications by the end of September and will also offer affected employees severance pay based on tenure, along with 60 days of minimum transition leave.