US Internet service provider T-Mobile has announced that will be laying off almost 2,000 employees, mostly holding call center positions, in efforts to slash operating costs amid stiff competition from other giants in the industry.
In a report from New York, CNN quoted T-Mobile USA CEO Phillip Humm as saying that the workforce reduction move was necessary for the company to gain the efficiency needed to invest for further growth.
He disclosed that the layoffs will complete by July but did not indicate whether additional reductions will occur even as he emphasized that the move intends to optimize further the company’s operations.
The report came even as CNN noted that T-Mobile remains profitable amid stiff competition from its fellow service giants Verizon, AT&T and Sprint. It currently joins the A-list as America’s fourth largest national carrier.
Earlier, T-Mobile’s parent company, Deutsche Telekom, announced that the American division was up for sale, but it still looking for a buyer. As part of the sell effort, a planned merger with AT&T worth $39 billion failed to win government approval.
Providing additional details, the T-Mobile chief said the planned mid-year layoffs intend to pare down its call center sites from 24 to 17, announcing however that even with the impending layoffs, the remaining 17 calls centers are likely to take in some 1,400 new hires to improve efficiency.
The plan opens the door for laid-off workers to reapply for positions at the remaining call centers, while the rest are set to receive relocation assistance.