T-Mobile has unveiled its plan to trim its workforce by eliminating 401 positions in Bellevue, as disclosed in a filing with the Washington State Employment Security Department. This action is a facet of T-Mobile’s broader job reduction strategy announced last week, which aims to reduce its employee count by nearly 7% or 5,000 jobs. The primary reasons cited for this move are the escalating costs of customer acquisition and intense industry competition.
The company is on track to finalize this round of layoffs by the conclusion of September, with separation for the affected Washington employees slated to commence on October 24, based on the state filing.
T-Mobile, headquartered in Bellevue, currently employs a workforce of 5,300 in the city. Nationally, the company’s total workforce stands at 71,000, as indicated by its most recent annual earnings report.
Describing these layoffs as a “significant change” for the organization, CEO Mike Sievert conveyed this sentiment in an internal email to employees last week. He added that while the current layoffs are substantial, there are no immediate plans for widespread workforce reductions in the near future.
Notably, some of the roles undergoing elimination are redundant or tied to evolving systems and procedures that may no longer align with the company’s current policies. While customer care and retail positions remain unaffected, the impending cuts will primarily impact corporate, back-office, and select technical roles.
To mitigate the impact on affected employees, T-Mobile is offering comprehensive severance packages tailored to tenure, a minimum of 60 days in transition leave, accelerated vesting of stock, ongoing tuition reimbursement, career transition assistance, and a lifetime T-Mobile service discount.
Sievert also emphasized that departing employees who leave on good terms might have opportunities for reemployment as the company embarks on the expansion of other operational domains.
T-Mobile’s workforce reduction strategy echoes a trend seen among other Washington-based companies, including Amazon, DocuSign, Google, Meta, Microsoft, and Boeing. These firms have all revealed plans for workforce reductions this year, citing concerns related to inflation and a decelerating economy.