T-Mobile Cutting Another 900 Jobs in Wake of Failed AT&T Deal

Published on May 15, 2012
by Ina Fried

T-Mobile USA is cutting a further 900 jobs this week as the carrier looks to revamp itself after the failed effort to sell itself to AT&T.

The No. 4 U.S. carrier said that it is eliminating some jobs and outsourcing others, while also staffing up in some areas, such as business sales.

“T-Mobile previously announced its intent to restructure and optimize operations throughout the company in order to best reposition the company, given today’s demanding and rapidly evolving marketplace,” the company said in a statement to AllThingsD. “This week we are communicating to our employees a series of additional organizational changes to best position T-Mobile to powerfully compete and return to growth.”

Parent company Deutsche Telekom has agreed to pump billions of dollars into the struggling carrier to help modernize its network and launch high-speed LTE service. At the same time, T-Mobile has continued to lose contract customers and has said it needs to better align its cost structure even as it tries to regain lost ground.

As part of last week’s earnings report, the company said it aims to beef up efforts to sell to businesses, among other efforts.

Earlier this year, T-Mobile announced a first wave of cuts that included the closing of several call centers and at the time indicated further restructuring was on the horizon. The company has also said it is exploring whether to sell its cell towers.

According to a memo obtained by the Verge, CEO Philipp Humm says affected workers will be notified this week if their job is among those being cut.

“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,” Humm said in the memo. T-Mobile said most workers will learn their fate today or tomorrow.

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