T-Mobile USA has revealed plans to consolidate its call centers and cut 1,900 jobs as the nation’s fourth-largest wireless operator takes steps to remain competitive after its merger with AT&T collapsed last year.
Concentrating call centers is an important step to achieve competitive cost structures to successfully compete as Challenger and value player in the wireless market,” said Philipp Humm, CEO and President of T-Mobile, in a statement. These are not easy steps to take, but they are necessary to realize efficiency in order to invest for growth.”
The Bellevue, Wash.-based mobile-phone operator plans to consolidate its call center operations from 24 to 17 facilities by the end of June. T-Mobile employs 3,300 individuals at the seven call centers that will close, although the company anticipates hiring as many as 1,400 individuals to work at the remaining 17 call centers.
The call centers scheduled for closure are located in the following areas: Allentown, Penn.; Fort Lauderdale, Fla.; Frisco and Brownsville, Texas; Lenexa, Kan.; Thornton, Colo. and Redmond, Ore.
T-Mobile also revealed plans to restructure and optimize operations in other parts of its business by the end of the second quarter as the company hustles to improve its financials and return to growth in the wake of its failed merger with AT&T.
The company said it’s taking steps to help affected employees by offering severance pay and outplacement support. In addition, T-Mobile is creating on-site career centers at the seven call centers to provide employees with a personal career coach and access to job search training, tools and technologies. The company also plans to pay for two months of continued health coverage for eligible employees who elect COBRA benefits.
Last month, T-Mobile announced a number of planned strategic investments, including a $4 billion modernization of its network, the launch of LTE technology in 2013, revitalization of its brand and an investment in 1,000 new business sales positions.