The “New” T-Mobile has announced mass layoffs today as part of its “workforce evolution” process. The company has been under scrutiny following its recent, controversial merger with Sprint.
This is, unfortunately, an exact realization of what employees fear when it comes to mergers. Speaking in terms of logic alone, when two companies that do similar things combine, that merger inevitably creates redundancies. Many positions, especially as one considers entry-level and sales roles, don’t need representation from two companies. It’s common for companies to shift focus after a merger and cull some of its employees, despite that T-Mobile’s former CEO specifically stated this merger with Sprint would add jobs prior to his departure, even going as far as saying “the New T-Mobile will be jobs-positive from Day One and every day thereafter. That’s not just a promise. That’s not just a commitment. It’s a fact.” This cuts especially deep given the employment struggles introduced by the coronavirus pandemic.
The news was confirmed through a press release from T-Mobile itself. The statement outlines the company’s plan to prepare for further growth by removing some positions. Within two paragraphs, the briefing explains that T-Mobile is adding 5,000 jobs across various positions, but “Some employees who hold similar positions are being asked to consider a career change inside the company, and others will be supported in their efforts to find a new position outside the company.” It’s essentially corporate-speak for consolidation.
Why T-Mobile Is Paring Its Staff
The immediate suspicion upon hearing this news, for anyone who has followed the merger saga, is that T-Mobile is firing all of its newly-acquired Sprint employees. That’s probably a bit of an exaggeration but the bulk of these layoffs most likely comes from former Sprint staff, because of the logical leap that if T-Mobile was unhappy with its staff, it wouldn’t have kept them this long in the first place.
That theory is supported by an article from TechCrunch, which reveals more information gleaned from leaked audio of the conference call. The article’s other source is someone who was present on the call, and that individual highlights that none of the people impacted by the layoffs were T-Mobile staff before the merger. Additionally, T-Mobile VP James Kirby specifically mentioned closing what used to be Sprint’s sales unit, according to the source.
While it’s easy to be cynical about this, everything appears to be legal here. The layoffs meet the guidelines of the WARN act, ensuring the impacted parties will retain their roles and paychecks for at least two months. Furthermore, T-Mobile is very quick to point out that positions will open for people whose jobs are being shuttered. There’s a severance package available as well. These are all signs that the company is taking the steps to execute these positions somewhat humanely, but that serves as little consolation to the hundreds or thousands of people losing employment during a pandemic, after being led to believe that wouldn’t be a concern. There’s the potential that as “the New T-Mobile” ramps up to better compete with AT&T and Verizon, it will add more jobs than it has now. By then, though, most people who were laid off today will likely be employed elsewhere, so even that promise is an empty gesture.
Sources: T-Mobile, TechCrunch
