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May 16, 2012

T-Mobile Gives 900 The Pink Slip

By Julie Griffin, Contributing Writer

I’d like to think the T-Mobile (News - Alert) model zipping down the street on her pink motorcycle is a metaphor of the company’s direction. But instead of moving forward, the combination of T-Mobile’s ambitions for brand reinvention and circumstances leading to their loss of net, has taken the company on a roller coaster ride.

The latest news of the severance of 900 jobs follows the March announcement to slash seven call centers and 1,900 jobs. The 900 jobs that the company severed today will be “the second round of cuts in two months,” according to Market Watch. Perhaps they had to step on a few toes to get to the 4G LTE (News - Alert).

There are currently 36,000 T-Mobile employees in the U.S., according to the Wall Street Journal, so the job cuts thus far are about three percent. Sources report T-Mobile has lost 12 percent of its workforce this year. Of the 1,900 jobs lost from the seven closed call centers, some will be outsourced, and 1,000 employees will be hired for enterprise and sales purposes.

"While difficult choices had to be made, restructuring our organization will help us better respond to market and customer demands,” T-Mobile told The Verge.

Failing to meet customer demands resulted in the loss of 510,000 contract subscribers during the first quarter. One of T-Mobile’s obstacles that have kept them from keeping pace with rivals is their failure to incorporate the iPhone (News - Alert), a detrimental component for networks these days.

One of T-Mobiles turnaround strategies is to offer more “compatible” services. Some sources report that nearly one million T-Mobile subscribers are using unlocked iPhones. Incorporating the iPhone and marketing pre-paid services, are what saved Sprint from losing revenue predicted of them for the first quarter.

The price tag (News - Alert) for the total brand transformation reads $4 billion – a substantial amount for a company that saw a significant loss of contracts and is still recovering from the failed merger with AT&T (News - Alert), despite the substantial severance package. The cost includes the installation of 37,000 LTE sites across the U.S.

It is also rumored that T-Mobile might sell some of their cell towers to raise additional funds. Despite T-Mobile's current state of employment, they might offer jobs in the future related to their reconstruction.

Edited by Braden Becker
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