T-Mobile USA will be cutting about 900 jobs in an effort to restructure their company, the mobile-network operator said Wednesday. The company was already involved in a 1,900-job reduction from its "call centers" in March 2012, Reuters revealed.
With more than 36,000 employees, T-Mobile has lost customers over the last two years as it competes with companies such as AT&T and Verizon. In 2011, the FCC denied the company's $39 billion deal that involved being taken over by AT&T.
T-Mobile reported that its first quarter results released May 9 saw a reduction of 510,000 contract customers. At the moment its total customer base is about 33.4 million. In addition, it credits the lack of the iPhone 4S to sell in their stores as a major reason why more of their contracts had been deactivated.
According to a T-Mobile spokeswoman, the 900 jobs cut were because of the "restructuring of key functions and departments across the company, including the elimination of some positions and outsourcing of others." The spokeswoman added that "While difficult choices had to be made, restructuring our organization will help us better respond to market and customer demands and bring opportunity for continued career development and growth for many of our employees."
The March job cuts were done in order to reduce the number of "call center" sites from 24 to 17. The company later announced that they planned to rehire about 1,400 employees for their other call centers, and they also mentioned to those workers that had been laid off that they could transfer the other locations.
T-Mobile admitted that their restructuring initiative would enable the company to "fuel investments that further strengthen T-Mobile's competitiveness." They added that the company has made an investment of $4 billion to upgrade their system that will lead to the 2013 unveiling of 4G LTE network. They also plan to add 1,000 new sales associates.
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