T-Mobile on Thursday announced it plans to lay off 5,000 employees, or around 7% of its total staff, over the next five weeks.
The reductions will largely affect corporate and back-office jobs that are “primarily duplicative” to other roles and will reduce the company’s middle management layers, CEO Mike Sievert said in a letter to employees Thursday. The company also plans to reduce its spending on “external workers and resources,” but its retail and “consumer care” staff who work directly with customers will not be affected, he said.
In Thursday’s letter, Sievert said that in the three years since closing T-Mobile’s acquisition of rival carrier Sprint, it has been working to streamline the combined businesses and accelerate the build-out of its high-speed internet business. However, he suggested it was important for the company to now narrow its focus. “It is clear that doing everything we are doing and just doing it faster is not enough to deliver on these changing customer expectations going forward,” he said.
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