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T-Mobile changes blamed on digitalization

Many of our readers believe that T-Mobile's recent alleged layoffs were a result of its digital transformation push.

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By Anam Hamid

Published: Dec 24, 2025, 9:22 AM

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T-Mobile Wireless service

Earlier this month, we reported that T-Mobile was ostensibly trimming staff and polled our readers about the drivers behind the change. Most respondents believed the company's ongoing digital transformation spurred the downsizing.

Digital shift and redundancy

T-Mobile reportedly let go of some business unit staff, paused onboarding, and issued a hiring freeze. Some structural changes were also made to the retail division. Sales roles were hit hardest, though the cuts extended to other departments as well.

We asked our readers why they thought T-Mobile was laying off employees and received 892 responses. 349 (39%) blamed it on AI. 313 (35%) thought the T-Life app was the culprit. 230 (26%) attributed the changes to operational efficiency.

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Mike Sievert, former T-Mobile CEO, April 2025

Fruits of digitalization

Verizon is laying off 13,000 employees as the beleaguered company makes cost-cutting its new guiding principle.

T-Mobile, on the other hand, is thriving, but new CEO Srini Gopalan is changing how the company is run. Digital transformation and operational efficiency are among his main goals.

The carrier has been relentlessly pushing T-Life, an app that promotes self-service. The app has been downloaded more than 90 million times and was one of the top apps on Apple's App Store in 2025.

The company has also struck a multi-year deal with ChatGPT creator OpenAI to revolutionize customer service. OpenAI's models are being used to develop a customer service chatbot that can handle interactions without the need for a human agent.

These changes may have rendered some roles unnecessary, leading to a layoff cycle projected to last through the end of the first quarter of 2026.

Why do you think T-Mobile is laying off employees?

Employees' worst fear is coming true

T-Mobile staff have sounded the alarm bells regarding impending layoffs for months. The emphasis on T-Life reduces the necessity of in-store staff for transactions, making it easier for T-Mobile to eliminate those positions.

As companies ramp up AI spending, they appear to be cutting costs elsewhere, with employees being the first to feel the impact.

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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.

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