T-Mobile US announces plans to make 5,000 job cuts in the coming weeks

T-Mobile US has said it plans to cut 5,000 jobs, or about 7% of its workforce.

In an email to employees shared in a regulatory filing, CEO Michael Sievert said the job losses would come over the next five weeks and affect T-Mobile workers across the United States – particularly those working in corporate and back office roles, as well as some technology positions.

“This is a large change, and an unusual one for our company,” Mr Sievert wrote. “Because of this, we do not envision making additional largescale reductions across the company again in the foreseeable future.”

T-Mobile estimated it will book a pre-tax charge of about 450 million US dollars (£356 million) in the third quarter related to the job cuts. Laid-off employees will receive severance payments based on tenure, 60 days minimum of transition leave, career transition services and other benefits, the announcement said.

The redundancies at T-Mobile follow mass job cuts in the past year at a handful of companies — including Google, Meta, Amazon and Microsoft. Beyond the tech sector, redundancies have also hit Disney park employees, newspapers and some higher education jobs.

Mr Sievert said the T-Mobile jobs affected by the upcoming layoffs “are primarily duplicative to other roles” or may not fit with current changes and priorities at the company. He also pointed to rising costs of attracting and retaining customers.

The current restructuring is aimed at getting T-Mobile “efficiently focused on a finite set of winning strategies,” Mr Sievert added — later noting that the company needs “to move at the speed of technology”, by using artificial intelligence and other tools to meet customer needs and stay competitive.

Last month, T-Mobile reported a second-quarter profit of 2.22 billion dollars (£1.74 billion) — up from a 108 million dollars (£85.61 million) loss seen for the same period of 2022 — and posted total service revenues of 15.74 billion dollars (£12.48 billion).

The Bellevue, Washington-based company became one of the country’s largest mobile phone service carriers in 2020 after buying rival Sprint.

In May, T-Mobile also announced plans to acquire Mint Mobile, partly owned by actor Ryan Reynolds, in a cash-and-stock purchase of Ka’ena worth as much as 1.35 billion (£1.07 billion).

T-Mobile shares were down 2% in afternoon trading on Thursday.