T-Mobile has announced that it is laying off 5,000 employees. The Magenta Network says it’s become “materially more expensive” to attract and retain customers in recent months.
T-Mobile CEO Mike Sievert told Bloomberg that the company needs to cut expenses by laying off 7% of its employees. That amounts to roughly 5,000 jobs.
Chief Executive Officer Mike Sievert said in a letter to employees that the cost of attracting and retaining customers is “materially more expensive than it was just a few quarters ago.” Building out the company’s high-speed internet business and efforts in other areas “is not enough to deliver on these changing customer expectations going forward,” he said.
T-Mobile says layoffs will mostly affect “corporate and back-office” roles along with some technology positions. Sievert said that after this wave of layoffs, he “doesn’t anticipate any additional widespread company reductions in the foreseeable future.”