T-Mobile To Fire Almost Two Thousand Employees
Cellphone carrier T-Mobile USA Inc. said Thursday that it is cutting 1,900 jobs nationwide as it consolidates its call centers in an effort to reduce costs and remain competitive.
Seven of its 24 call centers will be closed by the end of June. About 3,300 people work at the centers slated to be shuttered, but T-Mobile said it plans to hire up to 1,400 people at the remaining 17 centers.
The call centers slated for closure are in Allentown, Pa.; Fort Lauderdale, Fla.; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colo. and Redmond, Ore.
The company said that workers whose jobs are eliminated will have a chance to transfer to the remaining call centers.
“These are not easy steps to take, but they are necessary to realize efficiency in order to invest for growth,” Philipp Humm, T-Mobile CEO and president said in a statement.
T-Mobile, based in Bellevue, Wash., is the smallest of the four national carriers and is dealing with steep subscriber loses, resulting in fewer calls to its call centers.
In last year’s fourth quarter, T-Mobile lost a net 802,000 subscribers on contract-based plans, which are the most lucrative. It is the only national carrier not offering the iPhone, the popular Apple Inc. device now carried by all three of the company’s larger rivals.
In addition, a $39 billion bid by AT&T Corp. to take over T-Mobile was thwarted last year by antitrust concerns.
T-Mobile said it will restructure other parts of its business during the second quarter. That includes plans announced previously to modernize its network, add new technology and hire more sales staff. The company employs about 36,000 people.
It announced in February that it will revamp its wireless data network this year, making it compatible with iPhones and other smartphones.