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T-Mobile USA CEO sends out memo to employees detailing the company's new restructuring efforts

Posted: , by John V.

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T-Mobile USA CEO sends out memo to employees detailing the company's new restructuring efforts
Back in late March, T-Mobile announced its plans on closing down seven of its call centers, which resulted in the loss of some 1,000 jobs during the process. However, it seems that future job cuts are on the horizon for some employees, as a memo from T-Mobile USA CEO Philipp Humm details the company’s future restructuring efforts.

Reading into the lengthy memo, Humm mentions having to make some “difficult decisions” that would affect mostly back of the house employees – whereas “representatives in the remaining 17 call centers, technicians in engineering, and frontline employees in our T-Mobile corporate-owned stores will not be affected.

With this “new structure” for the carrier, it’s unknown at this point on how many employees will actually be losing their jobs, but as Humm makes clear early in the memo, “T-Mobile has stressed that 2012 is a rebuilding year for the company.” Therefore, it’s quite possible that more layoffs might be on the horizon to meet with the company’s revenue realities.

Naturally, we’ll more than likely see another kind of communication over the course of the week regarding the details about this round of layoffs. If you’re curious to know what was mentioned in the memo to T-Mobile employees, you can read about it below.

source: The Verge via TmoNews

Dear colleagues,

Since the beginning of the year, T-Mobile has stressed that 2012 is a rebuilding year for the company. A vital step in that process was announced in March with the consolidation of our call centers. This week, T-Mobile is taking the second essential step. We are announcing a new structure that further aligns our costs with our revenue realities, enables teams who support our field organization to act and react with greater speed and effectiveness to customer and market opportunities, and better positions us to return to growth.

The new organization required difficult decisions that will impact some of our employees. This week, news will be shared personally with employees and teams who are directly affected by the restructuring. Changes will include some position eliminations and changes to individual roles and responsibilities. It is important to emphasize these impacts to employees result from business decisions. We have tremendous employees here at T-Mobile and we truly wish we could retain all our talent, but our business realities require hard choices. For affected team members, we are providing generous transition support including severance, assistance with COBRA continuation coverage, and outplacement services. As mentioned in the March announcement, customer service representatives in the remaining 17 call centers, technicians in engineering, and frontline employees in our T-Mobile corporate-owned stores will not be affected.

Our rebuilt structure enables T-Mobile to realize significant savings, allowing us to invest in future growth — in particular modernizing our network to LTE, repositioning the T-Mobile brand, and aggressively pursuing the B2B segment where we plan to add 1,000 positions over the next few years. We gain the agility to put resources where the current opportunities are, grow in areas where potential is greatest, and act on emerging opportunities quickly and rationally.

The restructuring provides a sustainable organizational model, centered on our T-Mobile Values, with the following attributes:

A greater focus on driving Customer Delight by reducing the layers between working teams and executive leadership, and shifting and consolidating groups in the field sales regions and the FSC to minimize redundant work — resulting in more effective coordination and communication.

A renewed emphasis on Best Place to Perform and Grow:
Enhanced people manager spans of control (number of direct reports), enabling faster decisions, more ability to execute, and more empowerment of employees at all levels.
Evolution of our leadership model from player-coach, where more time is spent on daily tasks than on planning and guiding, to leader-coach, where time is focused more strategically on coaching, developing, delegating, and motivating.

We approached the restructuring process and decisions with care, rigor and cross-functional alignment. A team comprised of top leaders, with support from industry-leading subject matter experts, worked closely together over the past few months to develop an effective and sustainable structure. We strongly believe the organizational principles we applied are lasting ones. More details on the new organizational structure will be shared in department and team communications this week and more broadly after that.

I want to assure you we will move through the communications this week very thoughtfully, but also as quickly as we can while preserving the quality of the conversations that need to happen. As always, our T-Mobile Values will guide our actions.

Thank you for your patience as we work through what will be a difficult week. Thank you for your continued commitment.

With sincere appreciation,

Philipp Humm
CEO & President
T-Mobile USA

23 Comments
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posted on 15 May 2012, 13:37 3

1. Zayuh24 (Posts: 148; Member since: 21 Nov 2011)


So basically... "We're proud of what you've done so far, but in order for us to grow, we're randomly selecting smaller chains that do not bring in as much revenue as larger call centers to cut our losses short.... We plan on creating 1000 jobs after letting you go. If your store is called, you're SOL until we see some improvement. Thank You."

posted on 15 May 2012, 14:03 3

2. belovedson (Posts: 832; Member since: 30 Nov 2010)


tmobile instead of talking why dont you post up how much the ceo and all the cronies made the last 5 years.

you just got a couple billion dollars in free $$$ from att, what a load of crap.

posted on 15 May 2012, 14:19 3

3. JGuinan007 (Posts: 632; Member since: 19 May 2011)


Man when will someone buy this company and fix it before it's too late?

posted on 15 May 2012, 14:54 1

4. DavidVZW (Posts: 1; Member since: 15 May 2012)


You gotta spend money to make money...

posted on 15 May 2012, 15:04

5. darkvadervip (Posts: 300; Member since: 08 Dec 2010)


Apple needs to buy tmobile and sprint and combine

posted on 15 May 2012, 16:13 1

8. miles16852 (Posts: 206; Member since: 20 Oct 2011)


your obviously very horrible at having ANY business sense! keep your job please...

posted on 15 May 2012, 15:28 1

6. Carlitos (Posts: 311; Member since: 23 Oct 2011)


Wow, apparently not even with the billion something bocks AT&T gave them, they seem to be worsening.

posted on 15 May 2012, 15:33 2

7. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)


Microsoft need to buy Tmobile

posted on 15 May 2012, 16:25 1

9. lubba (Posts: 1310; Member since: 17 Jan 2011)


Despite their price saving plans, Tmo is still losing both customers and revenue, If that is the case. What is Tmo's overall problem? Ok they have 3G, 4G, and a girl with a crotch rocket. What else is missing?

posted on 15 May 2012, 17:34 1

10. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


without an iPhone T Mobile is dead

posted on 15 May 2012, 18:00 1

11. remixfa (Posts: 13903; Member since: 19 Dec 2008)


burrito

posted on 15 May 2012, 18:28 1

13. Whateverman (Posts: 3189; Member since: 17 May 2009)


Thanks a lot remix... Now I'm hungry! Lol.

posted on 15 May 2012, 18:29

14. remixfa (Posts: 13903; Member since: 19 Dec 2008)


lol glad I could help. :)

posted on 15 May 2012, 18:54 2

17. InspectorGadget80 (Posts: 6276; Member since: 26 Mar 2011)


you have to he one of the dumbest person I've seen on this site. You think iPhone is god or something.

posted on 15 May 2012, 18:26

12. Whateverman (Posts: 3189; Member since: 17 May 2009)


T Mobile just needs to get rid of all the confusing rate plans, the My Touch name and the T Mobile girl. She's kinda hot but hot doesn't sell phones. Nor does the soccer mom friendly monikers like the My Touch. The Droid branding and commercials by VZW were brilliant, and had they not given the their special selection of Androids such a commanding name, Android wouldn't be where it is today. T Mobile was the first to carrier the iconic OS, yet hasn't be able to capitalize on that at all.

Here's a suggestion... Instead of My Touches or HTC One X, try the "Mach" One X or the Beast! Something that doesn't make users feel all girls when people ask them what phone they have. Anything that can set T Mobile's products apart from VZW, AT&T, and others would help a lot.

posted on 15 May 2012, 18:31 3

15. remixfa (Posts: 13903; Member since: 19 Dec 2008)


or they could just figure out how to effectively advertise all the advantages of the network. they haven't had good advertising since the days of Catherine zeta Jones.

posted on 15 May 2012, 18:52 1

16. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


Advantages of the network? They have the worst network of the big 4.

posted on 15 May 2012, 19:51 1

18. Whateverman (Posts: 3189; Member since: 17 May 2009)


True, but that was when people only cared about getting a free phone. With the popularity of smartphones now, not even CZJ is enough to make people for get that they could get a Razr, an Evo or an iPhone with other carriers. And your right, they should put heavy emphasis on their speeds. No matter how spotty, they're still faster then most.

posted on 15 May 2012, 20:39 1

19. remixfa (Posts: 13903; Member since: 19 Dec 2008)


spotty? they have the widest 4g coverage of all the networks. If your not in the backhills somewhere and in a population area, the coverage is quite good for most people.

Statements like that are EXACTLY why Tmobile needs more effective advertising. The last 2 years have brought major improvements to the network, but people think its the same little rinky dink network from 2008.

The other thing is brands. Your right. You mentioned 3 big brands that are easily recognizable. Tmobile loves to go after the "value oriented" person with middle of the road phones. If you go to any other carrier, they only spend money on the "big" name phones like the iphones, evos, ect. Tmobile spends all its cash on cheap androids like the Mytouch line. They desperately need a high end brand that people can recognize and want. People dont salivate over middle of the road specs (unless its an iphone), they salivate over huge screens and neat functions.

posted on 15 May 2012, 22:45 1

21. Whateverman (Posts: 3189; Member since: 17 May 2009)


Correction: I probably shouldn't say spotty. My experiences with T Mobile have all been pretty good. I hear a lot of people complain about the service, but I always had a pretty good connection.

posted on 15 May 2012, 22:35 3

20. JeffdaBeat (unregistered)


First...HOW DARE YOU BLASPHEME THE T-MOBILE GIRL!?

I think remixfa hit it on the head. The problem is that no one wants a cheap phone. Even people who don't have a lot of money don't want a cheap phone or a cheap phone service. I remember selling iPhones to people who saved for a while just because they wanted to have something that folks with more money had. I dunno...it made them feel special that they worked for something like that.

There is nothing wrong with being a value company, but you don't want to be a cheap one. I think T-Mobile has that stigma in a big way. Mostly created by them. For a while, they were the carrier for cool kids with their sidekicks. But somewhere they got caught up in being cheap. People started looking at them like they were cheap and started looking elsewhere for phones. T-Mobile can turn that around. Sprint used to be the same way...the cheap company and they turned it around. They just have other problems now...

But yeah...T-Mobile has to change folks' view and make people want them.

posted on 15 May 2012, 23:15 2

22. Whateverman (Posts: 3189; Member since: 17 May 2009)


LOL! Sorry Jeff, won't happen again.

posted on 16 May 2012, 13:24

23. hitechredneck (Posts: 55; Member since: 21 Nov 2011)


Tmobile knew all of this when they were talking with at&t about merging with them and forewarned the FCC about what would happen if the merger took place. And no tmobile does not have the largest 4g network at&t's 4g foorprint surpasses everyone look at the coverage maps not to mention the fastest LTE network. Who do you think Tmobile's roaming partner is..at&t per the break up fee. What happened to the 2 billion dollars they just gave them? Pocketed by Deutche Telekom in europe. If the government hadn't gotten its nose involved and targeted at&t as running a monopoly again this wouldn't be going on.

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