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Business News/ Companies / News/  T-Mobile USA Inc to cut off 5,000 jobs amid surging competition: Report
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T-Mobile USA Inc to cut off 5,000 jobs amid surging competition: Report

T-Mobile USA's corporate and back-office employees are likely to be affected. Some employees holding technology roles will also be laid-off, T-Mobile said in a regulatory filing.

The layoffs are something of a surprise for the fastest-growing wireless carrier in the USPremium
The layoffs are something of a surprise for the fastest-growing wireless carrier in the US

United States telecommunication company T-Mobile has informed that they will layoff 7% of their employees in a bid to aid cost cutting, as the company spends heavily to attract new subscribers in an increasingly competitive market.

According to reports, the layoff is set to affect at least 5,00 employees. According to Bloomberg report, the corporate and back-office employees are likely to be affected. Some employees holding technology roles will also be laid-off, T-Mobile said in a regulatory filing.

T-Mobile Chief Executive Officer, Mike Sievert said in a letter to employees that the cost of attracting and retaining customers is “materially more expensive than it was just a few quarters ago." Building out the company’s high-speed internet business and efforts in other areas “is not enough to deliver on these changing customer expectations going forward," he said, according to Bloomberg.

This development comes as a surprise, considering T-Mobile is the fastest-growing wireless carrier in the US.

The move indicates that the telecom company is looking to offset a new round of discounts and free phone promotions as the holiday season approaches, as reported by Bloomberg.

T-Mobile, like other US carriers, is grappling with a slowdown in subscriber growth as cable giants Comcast Corp. and Charter Communications Inc. sign up hundreds of thousands of new customers by offering free mobile lines.

T-Mobile is likely to cash in on the newest arrival of Apple Inc.'s phones.

According to media reports, T-Mobile had in July topped profit estimates and raised its subscriber forecast for the year. T-Mobile shares fell less than 1% in New York.

The report stood out from its peers Verizon Communications Inc. and AT&T Inc., which both reported disappointing customer gains.

Notably, AT&T Inc. has also been cutting jobs, eliminating 74,130 employees, including through divestitures, or 32% of its total staff since the beginning of 2021 through June 30.

AT&T increased its cost cut target by $2 billion to $8 billion over the next three years. The Dallas-based phone giant is currently restructuring operations by reducing more than 300 offices nationwide to 9 hubs. The move is expected to displace between 6% and 15% of its staff of 156,630.

(With agency inputs)

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Published: 24 Aug 2023, 10:52 PM IST
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