T-Mobile and at & T plan to cut thousands of jobs

 T-Mobile and at & T plan to cut thousands of jobs

The epidemic has put pressure on both companies profits and changed the way mobile users shop.

It is understood that T-Mobile said in a filing filed on Wednesday night that it expects to spend about $300 million on merger related costs, mainly for employee severance payments, to accelerate the expected cost benefits of the transaction. The company now expects pre tax consolidation costs to total $800 million to $900 million in the quarter to the end of June. T-Mobile did not disclose the exact number of layoffs. By 2019, T-Mobile had 53000 employees. Sprint revealed in early 2019 that it has 28500 employees.

Mike Sievert, chief executive of T-Mobile, said the company plans to recruit 5000 new positions in retail and engineering over the next 12 months. As part of this process, some employees with similar experience can consider changing positions within the company, and the company will help others go out and find new positions, said sewart

It is reported that at & T plans to cut more than 3400 jobs in the next few weeks. The cuts do not include hundreds of jobs that could be cut as a result of closing stores.

At & T said it would target and massively cut executives, managers and union employees while reforming its workforce base. The company also closed more stores to cater to online shoppers. The company said the shift was accelerated in response to the outbreak.

Downsizing is a tough decision and we cant take it lightly, at & T said in a statement.

On Monday, the T-Mobile network suffered a nationwide service failure, causing users voice and data to be interrupted intermittently for 12 hours. Federal regulators said they would investigate the incident. Neville ray, the companys technical director, later said the problem stemmed from a suppliers fiber optic circuit fault, a common fault condition for telecom companies.

In general, if a line is cut off, there are several standby lines in the backbone network of telecom operators. Redundancy didnt work, resulting in line overload, which was then exacerbated by other factors, Ray said Sprint customers were not affected, the company said, and vowed to take new security measures.

T-Mobile said it expected to reach an agreement with dish network, a satellite TV provider, on July 1 to sell Boost Mobile, a prepaid brand owned by sprint, and about 9 million users to the latter. Antitrust enforcers at the U.S. Department of justice have called for a spin off of the combined companys business to ensure that the U.S. retains four national mobile phone operators. Dish will initially use T-Mobiles infrastructure to serve Boost Mobile customers until it can move users to a new telecommunications network that is planned to be built from scratch. (Chenchen)