AP

T-Mobile will lay off 5,000 employees, or about 7% of its workforce, in the coming weeks

Aug 24, 2023, 11:03 AM | Updated: 11:25 am

Image: The sign for a T-Mobile store is seen, Jan. 30, 2023, in Pittsburgh. T-Mobile plans to cut 5...

The sign for a T-Mobile store is seen, Jan. 30, 2023, in Pittsburgh. T-Mobile plans to cut 5,000 jobs, or about 7% of its workforce, the U.S. wireless carrier announced Thursday, Aug. 24. (Photo: Gene J. Puskar, AP file)

(Photo: Gene J. Puskar, AP file)

Wireless carrier T-Mobile said Thursday it plans to cut 5,000 jobs, or about 7% of its workforce.

In an email to employees shared in a regulatory filing, CEO Michael Sievert said the layoffs would come over the next five weeks and impact T-Mobile workers across the country — particularly those working in corporate and back-office roles, as well as some technology positions. Retail and customer service teams will not be part of the cuts.

“This is a large change, and an unusual one for our company,” Sievert wrote. “Because of this, we do not envision making additional largescale reductions across the company again in the foreseeable future.”

T-Mobile estimated it will book a pre-tax charge of about $450 million in the third quarter related to the job cuts. Laid-off employees will receive severance payments based on tenure, 60 days minimum of transition leave, career transition services and other benefits, Thursday’s announcement said.

The layoffs at T-Mobile follow mass job cuts in the past year at a handful of companies — including Google, Meta, Amazon and Microsoft. Beyond the tech sector, layoffs have also hit Disney park employees, newspapers and some higher education jobs.

Sievert said the T-Mobile jobs impacted by the upcoming layoffs “are primarily duplicative to other roles” or may not fit with current changes and priorities at the company. He also pointed to rising costs of attracting and retaining customers.

The current restructuring is aimed at getting T-Mobile “efficiently focused on a finite set of winning strategies,” Sievert added — later noting that the company needs “to move at the speed of technology,” by using artificial intelligence and other tools to meet customer needs and stay competitive.

Last month, T-Mobile reported a second-quarter profit of $2.22 billion — up from a $108 million loss seen for the same period of 2022. The Bellevue, Washington-based company, which became one of the country’s largest cellphone service carriers in 2020 after buying rival Sprint, posted total service revenues of $15.74 billion for this year’s second quarter.

In May, T-Mobile also acquired Mint Mobile, partly owned by actor Ryan Reynolds, in a cash-and-stock purchase of Ka’ena Corp. worth as much as $1.35 billion.

T-Mobile shares were down 2% in afternoon trading Thursday.

AP

Photo: President Joe Biden disembarks Air Force One as he arrives Andrews Air Force Base, Md., Tues...

Associated Press

Biden makes a case for his legacy — and for Harris to continue it — in his Oval Office address

Biden made a case for his legacy on Wednesday night when he delivered an Oval Office address about his decision to bow out of the race.

19 hours ago

Photo: A delegate wears a hat with pins during the Republican National Convention Monday, July 15, ...

Christine Fernando, Steve People and Jill Colvin, The Associated Press

Rep. Walsh speaks for Washington as cheering GOP delegates nominate Trump for president

Cheering GOP delegates formally nominated Donald Trump for president at Monday's Republican National Convention kickoff.

10 days ago

Photo: Sen. J.D. Vance, R-Ohio, right, points toward Republican presidential candidate former Presi...

Jill Colvin, Julie Carr Smyth, Steve Peoples and Zeke Miller, The Associated Press

Trump picks Sen. JD Vance of Ohio, a once-fierce critic turned loyal ally, as his GOP running mate

Donald Trump named Sen. JD Vance of Ohio as his running mate, choosing a onetime critic who became a loyal ally.

10 days ago

trump assassination...

Ayanna Alexander, The Associated Press

What to know about Trump assassination attempt and the investigation into the shooting

Authorities want to know how a shooter was able to get on top of a roof so close to where former President Donald Trump was speaking and open fire.

10 days ago

Photo: Republican presidential candidate former President Donald Trump is surrounded by U.S. Secret...

Julie Carr Smyth, Jill Colvin, Colleen Long, Michael Balsamo, Eric Tucker and Michelle L. Price, The Associated Press

Trump heads to convention as authorities investigate motive, security in assassination attempt

Trump called for unity and resilience after an attempt on his life added fresh uncertainty to an already tumultuous presidential campaign.

11 days ago

Photo: President Joe Biden speaks from the Roosevelt Room of the White House in Washington, Sunday,...

Will Weissert and Zeke Miller, The Associated Press

In primetime address, Biden says country must not go down road of political violence

President Joe Biden says “we can’t, we must not go down” the road of political violence in America after the attempted Trump assassination.

11 days ago

T-Mobile will lay off 5,000 employees, or about 7% of its workforce, in the coming weeks