T-Mobile may be ahead of its carrier rivals Verizon and AT&T in an effort to improve coverage and provide more affordable pricing to consumers, but it comes at a significant cost, which has now affected the livelihoods of 5,000 employees. CEO Mike Sievert shared details that the company had to trim 7 percent of its workforce, stating that retaining thousands of customers has become financially taxing.
Layoffs may have been part of a bigger plan to introduce aggressive promotions in the future, especially with the iPhone 15 launch in the corner
In a letter sent to employees that was spotted by Bloomberg, the Chief Executive says that the costs of keeping customers became ‘materially more expensive than it was just a few quarters ago,’ and that its other businesses, such as high-speed internet plus other ventures ‘is not enough to deliver on these changing customer expectations going forward.’
Most of the employees being laid off come from corporate and back-office sectors, while the remainder comprise of individuals who were occupying roles in technology. Retail and consumer care divisions are not expected to be impacted. After 5,000 employees have been let go, Sievert does not anticipate any widespread headcount reductions, and with the iPhone 15 launch right around the corner, his assessment might be correct on this occasion.
The U.S. carrier has commanded the highest market in the region for cheaper plans in the previous three quarters, but as evident by the latest move, those decisions have financially hammered the company. With a little breathing room granted, T-Mobile will be able to market its cost-effective plans aggressively, along with device promotions, and with Apple expected to unveil four new iPhone 15 models next month, the company has more freedom on what it can do with its future marketing campaigns.
As for how those 5,000 employees will be compensated, T-Mobile has not commented on the latest development, but the workforce was likely informed well in advance. Also, the headcount reduction will not happen immediately but over five weeks, allowing the employees to find suitable work elsewhere.
WccftechContinue reading/original-link]
