T-Mobile wants to cut 5,000 jobs, which is about 7% of its total workforce.
In an email to employees that was included in a regulatory filing, CEO Michael Sievert said the layoffs would happen over the next five weeks and affect T-Mobile workers all over the country, especially those in corporate and back-office jobs as well as some technology positions. Teams that work in retail and customer service will not be cut.
T-Mobile thought that the job cuts would cost it about $450 million before taxes in the third quarter. An announcement on Thursday said that laid-off workers will get severance payments based on how long they worked there, at least 60 days of transition leave, job transition services, and other benefits.
In the past year, a number of companies, including Google, Meta, Amazon, and Microsoft, have laid off a lot of people. Aside from the tech industry, cuts have also happened in Disney parks, newspapers, and some jobs in higher education.
Last month, T-Mobile said that it made a profit of $2.22 billion in the second quarter, which is up from a loss of $108 million in the same quarter of 2022. The company also said that its overall service revenue was $15.74 billion.
After buying Sprint in 2020, the Bellevue, Washington-based company became one of the biggest cell phone service providers in the country. In May, T-Mobile also said it planned to buy actor Ryan Reynolds’s part of Mint Mobile in a cash-and-stock deal with Ka’ena Corp. that could be worth up to $1.35 billion.
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