May 16, 2012
T-Mobile Cuts 900 Jobs As Part Of Restructuring Process
T-Mobile on Tuesday confirmed that 900 jobs would be slashed as part of its restructuring efforts, and would also help fund the rollout of its new 4G LTE network and other endeavors, according to the company´s CEO, Philip Humm.
The failing wireless phone company cut 1,000 call center jobs in March, and Humm said then there would be more layoffs in the future.
“This week, news will be shared personally with employees and teams who are directly affected by the restructuring,” Humm wrote in the memo. “Changes will include some position eliminations and changes to individual roles and responsibilities.”
“It is important to emphasize these impacts to employees result from business decisions,” added Humm. “We have tremendous employees here at T-Mobile and we truly wish we could retain all our talent, but our business realities require hard choices.”
It is unclear exactly how many employees T-Mobile is letting go, but Humm said they will receive “generous transition support.” While the previous layoff affected call center employees, Humm made it clear that these folks, as well as technicians and engineers, won´t be affected.
T-Mobile has been steadily losing customers for the past several quarters. The recent fallout from the failed acquisition by AT&T proved to be a major upset in the company´s ability to move forward. After its February earnings report, the carrier announced a $4 billion “Challenger Strategy” to rollout 4G LTE.
“Since creating our current organization our business has undergone significant changes,” Jim Alling, chief operating officer of T-Mobile, said in an accompanying memo. “In particular, our revenues have declined while our costs have increased. As the Frontline Representatives of our company you know these business realities all too well since they translate into fewer customers visiting our stores and calling our call centers. In order to align with these business realities and to better position ourselves to regain growth in the future, it is necessary to restructure our organization. We will be communicating these changes throughout the week.”
Humm stressed to reporters during a conference call last week that the carrier is totally focused on the rollout of its 4G LTE network next year. As part of the re-branding efforts, the company transformed its spokeswoman - Carly - ditching her pink dress for black leather and a motorcycle. T-Mobile transformed her “from girlish to edgy to reflect the transformation of the T-Mobile brand,” Humm noted.
T-Mobile hopes the changes will improve its current network and help in its transition to 4G LTE. The carrier, which lags behind its larger rivals, has been aggressively repositioning itself after waiting patiently for nearly a year for the AT&T takeover.
But industry watchers fear it is too little, too late for the ailing carrier.