A month after laying off 5,000 employees, T-Mobile is rewarding shareholders with billions

16comments
We may earn a commission if you make a purchase from the links on this page.
A month after laying off 5,000 employees, T-Mobile is rewarding shareholders with billions
T-Mobile has been getting a lot of hate from customers for unpopular changes to plans and payment methods. Employees are having to deal with disgruntled customers who are not happy about recent changes. 7 percent of the workforce or 5,000 employees were laid off last month because the carrier's obsession with adding new subscribers by offering cheaper plans meant it had to cut costs elsewhere. 

But T-Mobile can be very generous when it wants. Ask the shareholders


T-Mobile has announced the first-ever dividend program for its shareholders. The company will pay dividends of $3.75 billion over the next five quarters. The company also intends to buy back $15.25 billion of its shares.

T-Mobile's shares rose $3.15 to $137.28 after the announcement. 

CEO Mike Sievert told Yahoo Finance that the company is "outperforming this whole sector on growth." He says that investors should continue to expect industry-leading earnings growth and cash flow generation.

This is sure to leave a sour taste in the mouths of the 5,000 employees who were let go last month and another estimated 5,000 who were allegedly terminated in 2020.

So why are shareholders being rewarded while 5,000 employees had to lose their jobs?


Well, Sievert says that it's not like the company lays people off every year. He explains that after 3.5 years of its merger with Sprint and doing a "historic network build," there's a lot of duplication. He says that this decision was made to improve the company's efficiency and reclaim the speed,  decisiveness, and characteristics that made it successful in the first place.

Those words sound logical, even if a little cold. But when you consider T-Mobile's promise of adding more jobs after its acquisition of Sprint, the words only sound hollow and insensitive. At that time, then-CEO John Legere said that the merger was all about creating new, high-quality, high-paying jobs. He stated that the company planned to add millions of new customers and that it would need a lot of people to provide support to new customers.

(T-Mobile) Galaxy S24 Ultra: save up to $720 via Samsung

Samsung's Discover campaign is on! With it, comes an incredible offer on the middle child, the S24+. If you pick T-Mobile as your trusted carrier, you'll get a free storage upgrade, plus an extra up to $600 via eligible device trade-in.
$399 99
$1119 99
Buy at Samsung

Galaxy S23 is up to $535 off with T-Mobile and a trade-in

Alternatively, you can trade in a suitable phone and sign up to T-Mobile through Samsung.com to save up to $535 on the Galaxy S23. Extra savings are available via Samsung's Offer Programs.
$164 99
$699 99
Buy at Samsung

Save up to $1,000 on Z Flip 5 with T-Mobile at Samsung

Currently, you can get the Z Flip 5 with a subscription to T-Mobile through the official Samsung store for up to $1,000 off! The deal requires an eligible device trade-in, plus the Go5G Plus or Go5G Next plan. Savings applied over 24 months.
$0
$999 99
Buy at Samsung
Loading Comments...
FCC OKs Cingular\'s purchase of AT&T Wireless