news

T-Mobile Targets Prepaid Business for Layoffs as Sprint Merger Nears Completion

Laid Off

T-Mobile reportedly has laid off a number of employees as it nears completion of its $26 billion merger with Sprint.

According to a Light Reading (Channel Partners’ sister site) report, T-Mobile has laid off workers within its Metro by T-Mobile prepaid business, citing three people familiar with the company. The extent of the layoffs is unclear.

Earlier this month, U.S. District Court Judge Victor Marrero dismissed a lawsuit from 14 state attorneys general in a move that represents the last federal regulatory hurdle for the two companies. The T-Mobile/Sprint merger awaits approval from the California Public Utilities Commission.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

T-Mobile president and chief operating officer Mike Sievert said the merger may close as soon as April 1. The carrier couldn’t be reached for comments on the layoffs.

According to the Communications Workers of America (CWA), reports indicate that T-Mobile has laid off hundreds of Metro by T-Mobile workers even though its merger with Sprint is not yet final. CWA’s economic analysis has found that the merger will result in the loss of up to 30,000 jobs.

CWA's Chris Shelton

CWA’s Chris Shelton

“T-Mobile is so eager to pad its executives’ bank accounts that they couldn’t even wait until the merger has gone through to start firing people,” said Chris Shelton, CWA president. “Since this deal was first announced, we’ve been sounding the alarm that the merger means tens of thousands of job cuts are coming. Sure enough, here they are. If the merger passes the final hurdles, we can expect thousands more. That’s why these workers need a voice at the table to protect their jobs and wages.”

In December, the CWA filed a petition with the U.S. Court of Appeals for the D.C. Circuit seeking to vacate the FCC order approving the T-Mobile/Sprint merger on grounds that it violates the Administrative Procedures Act (APA) among other federal laws. The California commission plans to vote on the transaction in its April 16 meeting.

While T-Mobile and Sprint are making “vague promises” that the merger will create thousands of jobs in the United States, the “data and the companies’ track records tell a different story,” the CWA said.


Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 133511