Home
News
You are here

Cheap plans are going to cost 5,000 T-Mobile employees their jobs

Updated: Aug 25, 2023, 8:06 AM

6comments

We may earn a commission if you make a purchase from the links on this page.

Cheap T-Mobile plans, and possibly iPhone 15 deals, are going to cost 5,000 employees their jobs

As a recent rumor had indicated, 7 percent of T-Mobile employees are going to lose their jobs over the next five weeks.

To ward off competition, T-Mobile has been offering affordable plans but those aggressive plans will result in the loss of jobs for 5,000 employees.

In a letter addressed to employees, the wireless provider's Chief Executive Officer Mike Sievert said that attracting and retaining customers is now "materially more expensive than it was just a few quarters ago." He added that expanding the high-speed internet business and efforts in other units are "not enough to deliver on these changing customer expectations going forward."

Letting staff go is a cost-cutting measure as T-Mobile continues to spend heavily to target new customers. The decision will primarily impact corporate and back-office employees as well as some technology roles. Retail and consumer-care staff won't be affected.

Bloomberg believes that is a proactive move to offset discounts and free phone promotions we will see during the holiday season, particularly for the upcoming iPhone 15 series.

According to a recent report, the new Pro models are expected to be more expensive than the current generation but carriers are likely to offer huge discounts. There has been a historic decline in upgrades this year across all carriers and the iPhone 15's release will be an opportunity to target high-value customers.

T-Mobile has seen a slowdown in subscriber growth as cable companies Comcast Corp. and Charter Communications Inc. entice new users by offering incentives such as free lines.

T-Mobile reported better-than-expected profits last month and also raised the subscriber forecast for the year, so the layoffs are kind of surprising. The company added 760,000 subscribers during the second quarter which it called its best second quarter in eight years. It was also the top choice for customers looking for inexpensive plans in the last three quarters.

Galaxy S24+ with T-Mobile and trade-in: save $600

Get the Galaxy S24+ with a subscription to T-Mobile via Samsung.com, and you can save up to $1,000 with a trade-in from participating carriers (this includes T-Mobile.) Alternatively, choose Samsung's trade-in option to save up to $600 on the S24+.

$600 off (60%) Trade-in

$399 ⁹⁹

$999 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.

$535 off (76%) Trade-in

$164 ⁹⁹

$699 ⁹⁹

Buy at Samsung

Save up to $1,050 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 at up to $1,050 off, including a $50 instant Samsung Credit with your selected carrier. As you might have guessed, the deal requires a trade-in.

$600 off (60%) Trade-in

$399 ⁹⁹

$999 ⁹⁹

Buy at Samsung

View Full Bio

Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.