T-Mobile Planning Layoffs At Company HQ Pre MetroPCS Merger?

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A new report circulating out of the Seattle Times is likely to ire House Democrats as reports of “significant round of layoffs” is expected to happen inside T-Mobile headquarters later this week. According to the report, more than 100 people in T-Mobile’s in-house marketing and other overlapping groups will hear the news tomorrow, with T-Mobile planning “integration” meetings to share the news. Unfortunately, I can confirm this report is accurate, though I’ve heard as much as 20-30% of the marketing and other related groups staff counts could be on the chopping block.

The timing of the story will likely cause House Democrats to take more action in hopes of convincing the FCC to make a combined T-Mobile/MetroPCS to promise no job cuts. Interestingly enough, the Communication Workers of America also warned a “large number of job losses” could result from the combination of the two companies. Mind you this is the same CWA that backed the proposed takeover of T-Mobile by AT&T, a combination that likely would have led to significantly more job losses due to the sizable marketing and related departments of both companies.

Ultimately, layoffs that occur this week may help both companies avoid any rulings from the FCC that has them commit to maintaining their respective workforces post merger. Still, it’ll be interesting to see how both House Democrats and the FCC react to any job cuts coming this week.

Seattle Times

 

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  • mangystinky

    its like the scene in Saving Private Ryan when the troops were taking over the bunker and the US used the flame thrower and the germans were jumping out of the bunker…us troops were saying
    “let em burn!!!”

    • Wesley

      Wait, how is it like that?

    • iTried

      I’m guessing you mean this time the Germans are burning the Americans?

  • Terry

    Most of the jobs that would be lost wouldn’t be “on the phone” positions. It’d be the salaried positions that CWA doesn’t represent. CWA is opposed to people having jobs that aren’t dues paying members.

    • TBN27

      As much as they would like more union members. They aren’t opposed to non union members. However they can’t legally do anything to help those people save their jobs.

  • Sidekicker89

    Sidnote.. I’ve been to T-Mobile’s headquarters (All the way from Ohio) and I just have to say it is a BEAUTIFUL area! On a clear day you can see Mount Ranier from there.

    I also have a family friend who works at HQ so I hope she doesn’t get axed… I hope the best and wish them luck to the people affected by the layoffs.

    • Sidekicker89

      Side note **

  • TheDisco

    That is one ugly set of buildings in that picture.

    • whiteiphoneproblems

      They are sure “logo’d out”…

      • TheDisco

        Not only that, the signage just looks horrible. I actually like the logo itself, just the construction and placement just looks tacky.

    • Spooln3

      Thats just the tops of three of them, if you actually get all of them in the picture it doesn’t look too bad. The traffic to get there on the other hand, ugh, speaking of, here I go, down tot he campus…

      • TheDisco

        Just looks like a bunch of styles thrown together without consideration. Was the campus built from the ground up or did they just buy a bunch of adjoining properties as they came on the market?

    • Sima

      It’s not that bad. There’s signage facing east so it can be seen from I-405. And there’s signage on the north side of the buildings that can be seen from I-90. This is taken at angle that you can see both sets of signage and just the tops of 3 of the buildings. It’s really zoomed in from what you would see from the roads around it. And the copper colored building is kinda weird, I admit. The other 5 buildings have similar styling.

      From the highway it looks better, especially at night.

      But it’s just leased office space nonetheless. Not sure what more would be expected.

      (Just bring up “t-mobile usa headquarters” in your maps tool and you can check out the area from there)

  • SouthernBlackNerd

    The CWA backed the ATT merger, because ATT was promising to bring back 5,000 jobs from overseas if the regulators just turned their heads to let them become a monopoly. 5,000 more people paying dues is a nice bump, plus the Tmobile employees who would join the union.

    • UMA_Fan

      This is precisely right!

      There should be more people pointing at the CWA for their hypocrisy. They’ve made it completely obvious they are motivated by having more union due paying members than protecting jobs.

      The CWA has said as much as that they would rather have (let’s say) 3,000 people lose their jobs if they received 1,000 new union members.

  • rolls eyes

    100 employees out of over 35, 000 total? Much ado about nothing.

    • pkssauce

      Unless it’s me being cut…

    • Jafar

      Oh nice shakespeare quote

    • Dakota

      Exactly, they’re lucky that’s all….. it’s always bad if it is you.. But you don’t need 2 if every position

  • Tito!

    With our without this merger, I think the situation would have been inevitable.
    The Company under new CEO is wanting to revamp their marketing campaign.
    Obviously, they’re being aggressive. It’s been stated to be their approach. As with other companies, this is normal.

  • ChitChatCat

    Well, given the awesomeness of many of the past marketing campaigns, maybe it is time for fresh blood.

  • Herb

    The more I read about this merger, the worse I feel about it.

    T-Mobile hired an outside group to survey employees to help guide the merger. Conveniently, the survey window closed right before Jon Leger held the meeting telling employees that upgrade benefits and merit-based pay increases were coming to an end. To emphasize the shadiness of this: T-Mobile had scheduled the meeting at an earlier date, pushed it back a week, and then postponed it “indefinitely” only to hurriedly announce it the morning it happened.

    If that’s not shady enough, the Q3 financials in the merger documentation do not accurately represent either company’s current holdings and neither company seems to be concerned with updating the filing. Understandably so, since both companies did worse in Q4. MetroPCS’ stock peaked with the announcement of the merger and has gone down ever since. I don’t see how adding more debt to an already indebted company will help stock prices go up.

    This merger is starting to sound more and more like a terrible deal, if only because neither company is offering any transparency whatsoever.

    • Tmofanemp

      You know, I didn’t even put 2 and 2 together with that timeline but now that you mentioned it, you are 100% right. I will say that I’ll take the merit delay over another commission re-structure tho. Not to mention that we still get the best emp phone benefits out of the big 4. I just recently helped a vzw marketing higher-up with her Tmo acct. she said vzw emp plans are crap.

      • tmo4eva

        They’re going to restructure the commission too.

    • metro dealer

      because both metro and tmobile are in a financal break down where they had no choice to do the merger that both know that there losing customer every Q. With this merger there hoping to my knowledge that they will find someone to buy-up both or these company before that can fill bankrup without this merger both company can surrive within the next 3-5 years.

  • wazmo

    The losses under Tmo/MetroPCS would probably be a fraction compared to Tmo/AT&T. Not unexpected, but far from a catasrophe.

    • SouthernBlackNerd

      While probably true, the majority of those losses would not have come at the expense of american jobs, because ATT was willing to bring back all its jobs from overseas to push the merger. Of course if the merger did go through, then we would end up with ATT and Verizon as our only options, because Sprint network would not have been able to handle the influx from Tmobile, causing a mass exodus, which would have probably forced them into bankruptcy.

      • UMA_Fan

        That was at&t throwing numbers around to look good in their favor. It seemed like a fancy way of saying they would cut overseas call centers to RETAIN Tmobile call center jobs with the merged company. They made it seemed like at&t was actually going to create new jobs in the US

  • Susan

    Well normally I wouldn’t care, but I was one of the people laid off.

    Obamacare and food stamps here I come!

    • AndroidProfit

      that takes balls to post that you normally don’t care and then expect sympathy because you’re going to be on food stamps. That sounds like poor planning on your part.

    • AndroidProfit

      Maybe they picked YOU because they knew that you don’t care.

    • Givemeabreak

      Really Obamacare and food stamps? This layoff package is pretty damn good, paid for two months while you don’t have to come in and work for that pay, while maintaining all your benefits, and then, at the end of that two months, you get your severance package? Poor you… Give me a break, You have two months paid to sit on your arse and look for a new job. If you can’t find a new job in Seattle within two months you don’t deserve welfare.

      • rfgenerator

        While the layoff package may be better than just being shown the door, it still does take the average laid off employee upwards of 7 months to find a new job, and even then they are likely to end up with a job that pays less than the one they had previously. Hardly wine and roses for those being given the boot.

  • rfgenerator
  • fechhelm

    Don’t ire the House Dems, oh no. Wait I got it, lets not lay off 100 employees, lets just furlough all the employees. Now that’s a plan I know the Dems can’t possibly be against.

  • mreveryphone

    I’ve been on that chopping block before, no its not fun, but when other companies see you’ve been part of a layoff or restructuring sometimes they tend to look at those people first due to the fact that they are still fresh in their in their skillset and ready to work. Rather than the people who sit on there severance or unemployment then wait til the last minute to find work. Just something my friend in HR told me. If you do get the ax get back up and get back to it!

  • bryck

    It’s always the little guys that gets screwed.

  • Mike

    There’s also rumors that they could be closing regional offices, like Frisco and Atlanta.

  • M42

    This is why mergers are bad. They eliminate competition and cause job layoffs.

    • Dakota

      Sometimes… Other times it saves a company that would’ve gone out of business

  • Dakota

    Mergers always lead to layoffs as companies consolidate.. What’s the big deal?

  • pholocity

    Last I heard bell Bellevue head count accounted for 1/3 of the work force at T-Mobile. That’s a lot of people to “help” the field markets. When the CEO had the all hands a few things he said he noticed at HQ was the abundance of catered lunches and how many meetings there were… The looks on everyone in the room was priceless. They knew what was up and legere had their number, HQ had become a huge beast that needed to get cut down.

    • gb l

      Where did you hear that? Headquarters accounts for about a tenth of the overall workforce.

  • The Dude

    Lay me off! I’ll take the severance package in a New York minute!

  • metro dealer

    11

  • http://www.facebook.com/unfazedrebel Jé Be (Here but Gone)

    Damn how many Signs does 1 building need JEE”T !

  • John Doe

    I was just fired by t-mobile the worst company to work for… All politics and i just want to you let you know that a lot of bull goes with selling the phone. THE NEW CEO HAS A MOUTH OF A TRUCKER

  • Realist

    I believe this is just the beginning of more cuts to come. More will come right after close.The combined company will carry about 23billion in debt. The new company will assume the tmobile name but keep structure which how reverse megers work. My guess there will no difference between post or prepaid. They will may it simple like metro pcs currently does and they operate lean and mean.

  • Ryan J

    As much as I hate to see several people laid off, and before you shed tears, I must say it is long time in coming. Most of the peeps laid off are “fluff” for the company. T-Mobile is and should be an engineering company with most emphasis on engineers. Unfortunately in the last few years, the poor engineer dude has been sidelined by the cool-dudes in marketing. The people in marketing are mostly well-to-do and green with not much of engineering background but sporting MBAs and fancy sounding titles. Not only are there catered meals everywhere but it is not uncommon for these guys to make at least 2 trips to starbucks in a day. Their work usually consists of “coordinating”, making powerpoints out of bunch of other powerpoints, getting in the way of engineering work, and sometimes downright conduct detrimental to tmobile interests. The so called PLMs are worst bunch – you wonder who they work for. There are lot of suck-ups. It is clear who is going to get a promotion, someone who gets “surprise” birthday party, baby shower – i.e., popular. I know there are some good guys but fewer and farther apart. There are still lot of inefficiencies in the company. This is only a start and more fluff needs to go to make it a more engineer driven company. Get rid of people who sell snake oil, crunch numbers for toy or designer footwear companies. Get real talent.

    • “Fluff”

      I wouldn’t say those being laid off were “fluff”. There were higher level people laid off, and that’s a money thing. I would say that T-Mobile is a very poorly run company, but most of the people there work very hard in spite of it all. The catered meals have stopped, the free soda and coffee will no doubt stop too, and the new management team feel free to get up in front of their teams and tell them they are superfluous…while they collect big fat checks. T-Mobile’s problem is it’s had no strategy forever, and what strategy it had changes with the wind, and this is pretty much the last gasp.

  • gb l

    It’s unfortunate that there was no follow-up on this story. Was there ever any official communication from management about this?