T-Mobile is the latest company to conduct a new wave of layoffs this year.
The wireless network operator announced on Thursday, Aug. 24 that it plans to eliminate about 7% of its workforce or 5,000 employees in the US, mostly in corporate roles.
T-Mobile Expects to See 5,000 Employees Leaving Soon
T-Mobile announced on Thursday, Aug. 24 that the upcoming layoff will take place for the next five weeks.
Two weeks ago, Phone Arena reported that T-Mobile was rumored to be the next company to lay off its staff as it continues to grapple with the challenging economic downturn.
According to the news outlet, the company previously showed over the last two years that it would conduct layoffs if needed.
T-Mobile even promised to add more jobs and not resort to axing some employees in line with the Sprint acquisition in 2020. However, that won't be the case if the final decision is already approved by the board of directors.
Once a rumor, it appears that this brewing news has become official this week. As CNN reports, T-Mobile will remove roughly 7% of its total staff, or 5,000 workers for the next five weeks.
T-Mobile Layoff Will Mostly Affect Corporate and Back-Office Jobs
In a letter sent to employees, T-Mobile CEO Mike Sievert said that the upcoming layoff will decrease the number of staff working in middle management positions.
Additionally, Sievert also noted that it will most likely affect "primarily duplicative" roles under corporate and back-office jobs. He clarified that those employees who work in the "consumer care" departments won't be included in the latest layoff.
"What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago," Sievert said.
Last month, the carrier that 5.6 to 5.9 million users are expected to subscribe to the wireless plans of the company.
To save costs and combat the ongoing economic changes, T-Mobile will implement some improvements in its current strategy.
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No More T-Mobile 2G Network in 2024
Back in February, Tech Times reported that T-Mobile's 2G network will no longer be operational next year. Before that, the American carrier offered its 3G network in 2022. However, it still continued to roll out the 2G network.
Since the 2G option is nearing its retirement, the operator has decided to stick with 4G LTE and 5G. This would force the customers to use these technologies.
For the remainder of 2023, you can still use the 2G network. However, the older devices won't be able to handle the upcoming upgrades in 2024.
To be exact, the 2G service will be shutting down on April 2, 2024.
The new 4G and 5G expansion, on the other hand, is expected to cater to the needs of 99% of Americans in the country. In Canada, Bell and Telus already put an end to the 2G service, but the 3G networks will still be active through 2025.
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