Today, T-Mobile announced that it will be cutting 5,000 jobs from its US workforce. This includes cutbacks at its corporate offices and even technology jobs according to an email to employees seen by Reuters.
T-Mobiel said its retail and customer care divisions will not be impacted by these cuts at this time. These job cuts will be made in the next five weeks as the company looks to cut costs. T-Mobile will also claim a $450 Million claim on its taxes as a pre-tax charge to help bring down its taxable income.
With these cuts, T-Mobile joins a growing number of companies cutting staff in 2023. AT&T reportedly cut thousands earlier this year. Verizon also warned its customer service employees of possible layoffs. Other companies, including Roku, Amazon, and more, have all cut staff in 2023.
This news comes as T-Mobile is rolling out a new high-end plan. This T-Mobile Go5G Next, is a new plan that lets T-Mobile customers upgrade their phones every year at the same price a new customer would.
“While the Carriers try to lock you in and limit your choices, T-Mobile continues to double down on value and deliver even more options, so everyone has a plan that works for them,” said T-Mobile CEO Mike Sievert. “Go5G Next brings more flexibility and freedom to wireless and another end to longer-than-you-want device contracts.”
With Go5G Next, anyone who switches is eligible for a free 5G smartphone with a trade-in. The catch is you must have paid off half of the value of your phone before trading it in to get the upgrade offer. According to T-Mobile, most customers will hit that mark every year. The other catch is it must have been at least six months since your last upgrade, even if you already have paid off half the price of your phone.
Like many companies, T-Mobile is facing new competition and higher costs affecting its bottom line. These changes are likely moves to address these issues.