T-Mobile US announced on Thursday that it will reduce its workforce by approximately 7%, cutting 5,000 jobs in the United States. This move comes as the wireless carrier faces rising costs associated with acquiring more subscribers in a highly competitive market.
Over the past three quarters, T-Mobile has dominated the market by offering discounted bundles for customers seeking more affordable plans. However, this strategy has taken a toll on the company’s finances.
“The expenses required to attract and retain customers have significantly increased compared to just a few quarters ago,” stated CEO Mike Sievert in an email to employees.
The job cuts, which will occur over the next five weeks, will primarily affect corporate and back-office roles, as well as some technology positions. Retail and consumer care divisions will not be impacted by these changes.
T-Mobile anticipates a pre-tax charge of approximately $450 million in the third quarter as a result of these workforce reductions.
In July, T-Mobile announced expectations of gaining between 5.6 million and 5.9 million net additions of wireless subscribers.
Follow Google NewsDenial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
