It’s been another bad week when it comes to layoff announcements. First, Juul said it was cutting nearly 30% of its workforce. Now, T-Mobile has followed suit, announcing that it plans to cut 5,000 jobs by the end of next month, reports NPR.
The job cuts will affect about 7% of T-Mobile’s workforce. In an email to T-Mobile employees announcing the job cuts, CEO Mike Sievert said that most of the position reductions will impact corporate, back office, and technology roles, Reuters notes. Sievert said that retail and consumer care divisions will not see layoffs.
The reduction of nearly 7% of its workforce comes after T-Mobile has spent much of the last year trying to increase its subscriber base by offering cheaper plans than its competitors. But such a move has also led to a rise in operating costs.
“What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” Sievert said in his email to employees. He also confirmed that the layoffs would take place over the next five weeks. Employees who are being laid off will receive a notice by the end of September.
Impacted employees will receive severance pay based on how long they were with the company. They will also receive 60 days or more of transition leave.
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