T-Mobile (NASDAQ:TMUS) has announced plans to reduce its workforce by just under 7%, focusing primarily on corporate, back-office, and select technology roles.
This move is expected to impact nearly 5,000 positions, the company said today. TMUS stock fell 1% on the news.
The company anticipates incurring a pre-tax charge of approximately $450 million in the third quarter due to this workforce reduction. Still, T-Mobile maintained its full-year guidance.
“The retail and consumer care experts who take care of our customers will not be impacted. After this process is complete, I do not envision any additional widespread company reductions again in the foreseeable future,” CEO Mike Sievert said in a letter to employees.
“We’re also taking opportunities to build bigger, broader people manager roles with deeper spans and fewer layers, to provide longer-term growth opportunities. At the same time, we’ll also be decreasing our reliance and spend on external workers and resources.”