T-Mobile announces to lay off about 5K workers

San Francisco, Aug 25 (SocialNews.XYZ) US-based wireless network operator T-Mobile has announced to lay off 5,000 employees, or around seven per cent of its workforce, over the next five weeks.

The job cuts will largely affect corporate and back-office jobs that are "primarily duplicative" to other roles and will reduce T-Mobile's middle management layers, the company said.

"Starting this week, and over the next five weeks, we will be making changes to our organisation that will result in the reduction of some positions at the company. These shifts will impact close to 5,000 positions, a little under 7 per cent of our total employees in locations across the country, primarily in corporate and back-office, and some technology roles," CEO Mike Sievert said in a letter to employees on Thursday.

He also mentioned that the company intends to cut spending on "external workers and resources," but that retail and "consumer care" employees who interact with customers will not be affected.

Moreover, the company estimated that it will incur a pre-tax charge of approximately $450 million in the third quarter of 2023 related to the workforce reduction.

"It is hard to part ways with our coworkers who will be impacted, and I want to let you know that our focus during this time of change is to do everything we can to treat each of them with as much care and support as possible. Our plan is to have all notifications complete by the end of September," Sievert said.

Affected employees will receive "competitive severance payments" based on tenure, plus an additional 60 days minimum of transition leave, which includes pay and benefits, plus accelerated vesting of their next stock vest, continuation of tuition reimbursement benefits, career transition services, and a new T-Mobile alumni service discount good for life.

Source: IANS