U.S. mobile provider T-Mobile US began cutting jobs faster than planned after closing the merger with rival Sprint Corp.
T-Mobile said it plans to spend about $300 million more than originally expected on the transaction costs, mainly related to severance payments.
The company did not specify how many people it would cut. At the end of 2019, the company had 53,000 employees. Sprint had 28,500 employees at the beginning of 2019.
At the same time, T-Mobile CEO Mike Sievert said that the company plans to hire employees for 5,000 new jobs, including in retail and engineering, over the next 12 months.
“As part of this process, some employees who hold similar positions have been asked to consider changing their careers within the company, while others will be supported if they try to find new work outside the company,” he said.
A competitor of T-Mobile AT&T Inc. presented details of a plan to reduce several thousand employees as part of cost-cutting measures.
AT&T plans to downsize more than 3,400 people in the coming weeks, The Wall Street Journal wrote, citing the Communications Workers of America, a union that represents the interests of a large number of company employees. This figure does not take into account the hundreds of jobs that may be cut as a result of store closures.
AT&T said it will make “targeted but massive cuts to management, managers, and employees who are represented by the union. The company is also closing a number of stores, accelerating the transition to online sales against the backdrop of the coronavirus pandemic.