T-Mobile USA CEO Philipp Humm has sent a memo to his employees today announcing the net elimination of around 1,900 jobs nationwide, primarily resulting from the closure of seven call center facilities located in Allentown, Pennsylvania; Fort Lauderdale, Florida; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colorado; and Redmond, Oregon. In reality, though, more staff will be affected than that — 3,300 positions are being slashed in total, with 1,400 being added at the company's remaining 17 call centers.
That's not all, though: Humm says to expect more. "Looking ahead, we will also be restructuring other parts of the company," he says, with announcements expected by the end of May. He cites the need to "be better optimized to match our customer base and call volumes" as the main driver behind the restructuring — if you read between the lines, that means that a shrinking subscriber base is behind the move. "We must address our business realities so we can focus on getting T-Mobile back to growth."
T-Mobile has some major expenditures coming up with the push into LTE, so trimming the proverbial fat seems to be Humm's focus — it's just unfortunate that so many people need to be affected in the process.
See the full text of Humm's memo below.
I have difficult news to share today: we are consolidating our call center operations and closing seven of our 24 facilities. This decision was not easily reached, but it is a necessary measure. The reality is our cost structure must be better optimized to match our customer base and call volumes.
The affected Customer Service facilities are Allentown, Pennsylvania; Fort Lauderdale, Florida; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colorado; and Redmond, Oregon. The consolidations will result in 1,900 net job reductions. Approximately 3,300 employees at the seven impacted facilities will be affected, and we will begin hiring immediately at the remaining 17 call centers to fill as many as
Impacted call centers will remain open for three months following this announcement. Affected customer service representatives will have the option to transfer to any of the remaining 17 call centers. Employees who choose not to transfer and are employed on the date the center closes, will be offered transition packages with severance pay and outplacement support. T-Mobile is partnering with an outplacement firm to provide on-site career centers at all seven facilities. Every employee will have access to a personal career coach and be offered job search training and tools. In addition, T-Mobile will pay for two months of continued health care coverage under COBRA (which is available for up to 18 months for eligible employees who elect this option).
Looking ahead, we will also be restructuring other parts of the company. It is important to note this will not include our customer service representatives in the remaining 17 call centers, technicians in engineering or front line employees in our T-Mobile corporate-owned stores. In other parts of the organization, the majority of changes will be announced by the end of May 2012. Senior leaders are intently focused on making the best possible choices standing on the foundation of our shared T-Mobile Values. The outcome will be an organization that is structured efficiently and closer to the customer. Leaders will share more information as plans evolve.
These are not easy steps to take — or, I know, to read. We must address our business realities so we can focus on getting T-Mobile back to growth.
Our commitment, as we go through this process, is to provide clear perspective and understandable rationale, be forthright in our communications regarding our decisions, and be respectful and compassionate in our treatment of affected individuals.
Thank you for your ongoing commitment and support.
With sincere appreciation,
CEO & President