Profits just keep rolling in at T-Mobile US. So only thing to do is axe 5,000 workers

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T-Mobile US will laic disconnected astir 5,000 employees, aliases astir 7 percent of its workforce, complete nan adjacent 5 weeks, nan wireless bearer revealed successful a caller regulatory filing.

In a missive to workers, included successful nan filing [PDF], CEO Mike Sievert said nan cuts were "NOT astir foisting much activity connected less people," but alternatively "optimizing each dollar, truthful it tin beryllium utilized to present a amended network, a amended value, and a amended acquisition for customers," adding that retaining customers had go much costly of late.

"We person zero volition of being a faceless – aliases heartless – institution successful a business that is already difficult," he added.

The layoffs travel conscionable weeks aft nan Un-carrier reported [PDF] profits of $2.2 cardinal complete its past reported 90 days trading, up from a $108 cardinal nonaccomplishment nan twelvemonth prior. T-Mobile US besides recorded a $1.9 cardinal profit successful nan 4th before. Sievert said nan occupation cuts should beryllium nan past "widespread institution reduction" for nan foreseeable future.

Thanks for helping america move a profit this year; now there's nan door.

According to nan letter, nan layoffs will chiefly deed workers successful corporate, back-office, and exertion roles. Retail and customer work workers won't beryllium impacted by nan cuts, it's said.

"Impacted roles are chiefly duplicative to different roles, aliases whitethorn beryllium aligned to systems aliases processes that are changing, aliases whitethorn not fresh pinch our existent institution priorities," Sievert explained.

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T-Mobile US says workers will beryllium offered "competitive severance payments based connected tenure," successful summation to astatine slightest 60 days of modulation leave. While nan simplification successful headcount is intended to trim costs agelong term, they'll costs nan telco astir $450 cardinal successful pre-tax charges during nan third-quarter of this year, according to nan biz.

In summation to occupation cuts, nan bearer is reorganizing its management. "We request to move astatine nan velocity of exertion utilizing data, AI, and different devices to present simplified integer experiences specifically curated for each customer," Sievert said. ®