(New York) The American mobile operator T-Mobile announced Thursday the elimination of nearly 5,000 jobs in the United States within five weeks, or almost 7% of its workforce, as part of a reorganization involving more “centralization”.
Operator boss Mike Sievert warned employees by email, saying the cuts were mainly in administrative departments and were “mostly duplicates”.
“Starting this week, and for the next five weeks, we will be making changes to our organization,” he explained.
According to him, this will entail the extension of the responsibilities of certain management positions and reduce the hierarchical levels.
As a result, some 5,000 positions will disappear, he said.
“At the same time, we will also decrease our reliance and expense on external workers and resources,” Sievert added.
“What is needed to attract and retain customers is materially more expensive than even a few quarters ago,” he noted.
T-Mobile said in a statement to the SEC, the US stock market watchdog, that a pretax charge of $450 million would be charged to its third-quarter results. The company nevertheless confirmed its objectives for its 2023 financial year.
As of June 30, the group had 116.6 million customers. It had second-quarter revenue of $19.20 billion and net profit of $2.22 billion, according to its website.
Around 1:30 p.m., T-Mobile shares fell 1.92% to $133.69 on the New York Stock Exchange.
