T-Mobile is cutting jobs faster than initially planned after its April merger with rival Sprint created a company with about 80,000 employees.
Rival AT&T, meanwhile, has detailed plans to lay off thousands of workers as it moves through a cost-cutting effort launched late last year, reported The Wall Street Journal.
The coronavirus pandemic that has pressured both companies’ bottom lines and changed the way cellphone users shop.
T-Mobile announced in a securities filing late Wednesday, June 17, that it expects to spend about US$300 million more than initially projected on merger-related costs, primarily on severance expenses, to accelerate expected cost benefits from the deal. The company now expects merger costs before taxes to total US$800 million to US$900 million during the June-ended quarter.
The company, which is based in Bellevue, Washington, didn’t detail the number of jobs being cut. T-Mobile ended 2019 with 53,000 workers. Sprint last reported 28,500 employees in early 2019.
T-Mobile CEO Mike Sievert said Tuesday the company seeks to hire workers in 5,000 new positions like retail and engineering over the next 12 months. “As part of this process, some employees who hold similar positions are being asked to consider a career change inside the company, and others will be supported in their efforts to find a new position outside the company,” Mr. Sievert said.
Full Content: Wall Street Journal
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