T-Mobile Slashes 1900 Jobs: Why?

By Surojit Chatterjee | March 26 2012 11:17 AM

T-Mobile USA, the 4th largest wireless carrier in the United States is slashing jobs like nobody's business. The company plans to cut 1,900 jobs in 7 call centers, as it tries to stay relevant in a cutthroat mobile business. This comes after the failed acquisition by AT&T, which ironically had plans to save and create jobs than putting 1,900 workers out of a job at a time when jobs are not easy to come by. The FCC who stroked down the deal must be scratching its head right now after this revelation.

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The T-Mobile USA job cuts are mainly to keep T-mobile in the game. The company needs $4 billion to fund its 4G LTE rollout. To get this, people need to lose their work unfortunately. T-Mobile needs to bounce back as the iPhone release saw 1.7 million of the carrier's subscribers walking away to Verizon, Sprint or AT&T. T-Mobile is the only top carrier in the US that is not carrying the iPhone, and it has proved to be costly.

Chief Executive Officer Philipp Humm, had this to say:

These are not easy steps to take, but they are necessary to realize efficiency in order to invest for growth.

The good news is that the job cuts won't affect sale staffs at the company's stores across the country. Technician and engineers can rest easy as they are also not targeted. It appears only those from the call centers will be given the pink slips.

T-Mobile reported back in February that it was planning to spend $4 billion in two years to upgrade the network to 4G LTE. Cutting jobs is a part of that process.

On the other hand, T-Mobile is not the only carrier that is on the verge of closing call centers. Verizon plans on closing 3 of its call centers. Fortunately for workers, they won't lose their jobs. Verizon plans to relocate its employees elsewhere to make better use of facilities.

Having said all that, T-Mobile plans to hire 1000 business sales executives before the end of the 2nd quarter of 2012. So, after all, this job cut thing is not looking so bad.

(reported by Vamien MacKalin, edited by Surojit Chatterjee)

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