T-Mobile Layoffs Number Thousands In Massive Reduction For Telecoms Company
Key takeaways
- T-Mobile has confirmed it’s laying off 5,000 employees, roughly 7% of its global workforce
- The telecoms giant expects a $450 million charge in the third quarter as a result
- T-Mobile shares fell 2% at the news
T-Mobile has confirmed it’s laying off thousands of jobs that are, in its view, surplus to requirement. In the firing line are ‘duplicative’ positions, with the company’s share price falling at the announcement. Here’s what you need to know.
If you’re hunting for undervalued gems in the market, look no further than Q.ai’s Value Vault Kit. This portfolio serves a curated mix of stocks with solid financials and low valuations, all under a data-driven AI’s expert management, helping keep your investment savvy and sound.
Download Q.ai today for access to AI-powered investment strategies.
What’s happening at T-Mobile?
A regulatory filing has revealed that T-Mobile intends to reduce its global headcount by 7%, translating to roughly 5,000 positions at the telecoms giant. CEO Mike Sievert said in an email the roles affected were either duplicative to other roles, legacy positions that don’t align with new systems or jobs that don’t match up with T-Mobile’s current priorities.
The company also plans to reduce its reliance on external contractors and freelancers. T-Mobile estimates that its next quarter will have a $450 million charge relating to the layoffs. CEO Sievert also confirmed the restructuring is about getting T-Mobile “efficiently focused on a finite set of winning strategies”.
The move is in line with what other big telecom companies have taken. AT&T laid off 9,400 employees last year, while Verizon slashed 10,400 roles in 2022 and has cut hundreds of jobs this year.
What was the market reaction?
T-Mobile shares fell 2% at the news, with the company’s stock falling 4.8% this year. However, it’s in better financial shape than its rivals like AT&T and Verizon. For its latest earnings beat, T-Mobile reported a second-quarter profit of $2.22 billion, a vast improvement from the $108 million loss seen at the same time last year.
Revenue was slightly shy of Wall Street estimates, arriving at $19.2 billion instead of the $19.3 billion predicted. The result was 2.6% lower than last year. However, subscriber numbers blew forecasts out of the water, with T-Mobile reporting 760,000 postpaid phone net subscriber additions for Q2, up from the 728,000 analysts expected.
The bottom line
T-Mobile is treading a similar path to its peers in conducting mass layoffs. Focusing on the positives of its latest earnings beat, the company is moving into a better position to weather any storms — but investors are looking at the downsides with the job losses.
Low-priced stocks with strong financials are no longer elusive thanks to Q.ai’s Value Vault Kit. Its state-of-the-art AI engine continually adjusts the portfolio to feature financially stable and attractively priced businesses, thereby helping to enhance your investment.
Download Q.ai today for access to AI-powered investment strategies.
