T-Mobile CEO Philip Humm Updates The Troops On This Weeks Job Restructuring

It’s been a tough week for T-Mobile with the announcement of another piece of news surrounding some internal job restructuring as the company continues preparation for its 2012 challenger strategy. In this new message sent to T-Mobile employees earlier this afternoon, Humm reiterates the company’s commitment to adding 550 new jobs as well 1,000 new B2B positions.

“We hope to retain many of our affected employees and are encouraging them to explore openings that suit their qualifications, including the 550 new positions and the hundreds of open, full-time retail positions ranging from Retail Store Associates to Retail Store Managers.”

Humm is right when he says that change is not easy and for the affected employees, this is among the hardest news anyone can hear. Still, its likely that T-Mobile is looking to adapt something of a leaner, meaner, stronger strategy by cutting costs that will allow it to reallocate money needed to grow the business.

The full statement follows below:


Dear colleagues,

This week we announced important organizational changes. These are part of our work to rebuild and reinvest in the business. Our new organizational structure enables us to react with greater speed and effectiveness to customer and market opportunities, aligns our costs with our revenue realities, and better positions T-Mobile to return to growth.

As you know, the restructure required difficult choices. Approximately 900 positions are being eliminated as a result of the changes.  We also will move quickly to fill 550 roles in 2012 to support the refocused needs of the business and take advantage of strategic opportunities. Consequently, the net result of the restructure changes in 2012 will be 350 job reductions. The 550 new positions are in addition to the 1,000 new B2B sales representatives T-Mobile plans to hire in the coming years as we aggressively pursue that opportunity.

We hope to retain many of our affected employees and are encouraging them to explore openings that suit their qualifications, including the 550 new positions and the hundreds of open, full-time retail positions ranging from Retail Store Associates to Retail Store Managers.

We also recognize, however, that many friends and colleagues will be leaving the company. It is important we acknowledge this difficult part of the process, honor the contributions these individuals have made, and thank them for their service to T-Mobile. We will provide assistance and support during the transition, including transition packages with severance pay and outplacement support. As we move through this process, our T-Mobile Values will guide our actions.

As I mentioned in my e-mail earlier this week, by streamlining operations, we will be able to invest in areas where we anticipate the strongest return. The priorities are to modernize our network to LTE, aggressively pursue the B2B segment, and reposition the T-Mobile brand.

I understand that change is not easy. I also know that by working together, we will succeed in rebuilding T-Mobile and returning to growth.

With sincere appreciation,

Philipp Humm

CEO & President

T-Mobile USA

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  • Sadly, it is a necessary thing to do. Fortunately, T-Mobile isn’t being too heavy handed with the job cuts (like Sprint a few years ago and Verizon Wireless now).

  • perfectalpha

    If T-Mobile focused on ways to properly be more efficient, how to maximize the ARPU on the accounts, and keep customers loyal for the two years on their contract they will be just fine. It isn’t that hard.

  • AOL

    Get rid of Carly and see how much they save, im sure she makes more that 1 store of employees combined.

  • Pckline

    Philip Humm
    I’ve had T-Mobile for 8 1/2 years and have never had any problem until the last 6 months. Service on my Nexus One fell off a cliff, both data and voice. I spoke with T-Mobile customer care 5-10 times about what might be causing these out-of-nowhere problems; tried all servers in the area, tried a new sim card, tried only UMTS and then only HSDPA connections, nothing worked. All this time I was surprised at the customer service reps, they had always been very helpful and went out of their way to help you or transfer you to a technician who could help you with diagnostics. All of a sudden they could’t care less and it seemed like any question I asked was outrageous in some way. My service continued to deteriorate and a customer care rep asked if I would be willing to try an HTC One S, for $200 no less. I said that was great and I appreciated the rep giving me the on-contract price, but I had to make sure that the new device would connect well and my voice quality would improve on the HSPA+ connection; “no problem, if it doesn’t do the trick just send it back and we can continue trouble shooting”. While the phone was being shipped I went to a T-Mobile retail store and used a friends One S, both times yielded the same results; voice was better, but the HSPA+ connection just wasn’t fast enough for my needs. When UPS delivered my One S, I did not take delivery, just returned to sender, didn’t even open the box. UPS tracking sent me a tracking text to let me know that the phone had been returned. Today I called to confirm that the phone had been noted as returned in my account and wasn’t going to get charged. Yep, phone returned, account showed a $200 credit for the returned phone, “is there another phone you would like to try, I’m sure we can find something that works for you for the next 24 months of your service agreement.” Yeah, customer care rep blatantly lied to me, I was told today that a customer care rep isn’t allowed to let me try a new phone without adding a new 24 month contract, only the PHONE has a buyers remorse period, the contract was non-negotiable. I spoke with customer loyalty and the woman I spoke with read, verbatim, the screen the previous rep had recited, nothing could be done to ammend for the initial sales rep telling me both the new phone and contract could be reset if I wasn’t happy with the improvement. Didn’t want to let it ruin my Saturday, said whatever and thanks for your help and hung up. I called back to customer service a few minutes later and asked to talk to a customer loyalty supervisor or a “suggestion” specialist if there is such a thing. I was transferred to a customer care supervisor (yes, I know this position is like being the head janitor), and told her that I wasn’t calling to dispute the new contract, I was only calling to tell her that THIS is the reason T-Mobile is going out of business. They have the best rate plans, new phones that are very nice, and their phones have no problems overseas. The customer care is the problem on-contract customers are fleeing T-Mobile like the plague. Being in a 2 year service plan and having to deal with their customer care isn’t worth the value added by their voice and data pricing. Too bad, since 2003 I have had no problems, then they just lost their way. I don’t know how long they can stay afloat relying on their prepaid busniess. The AT&T deal really was their last hope. An estimated Q3, 2013 LTE rollout isn’t possible. A quick look at their financials shows their revenue, profit, EPS, and operations can’t function at the rate of revenue decline. Deutsche Telekom must get T-Mobile off their books immediately. AT&T, Verizon, and Sprint have no interest in buying a failing competitor. I’d look to Cricket, Virgin Mobile, US Cellular, or some other regional carrier, but I don’t know if they would even want to join forces. Deutsche Telekom needs to be real, sell the spectrum in an orderly fashion, don’t wait until it’s a fire sail and the government has to come in and allocate which carriers can buy certain quotas of the spectrum. Too bad, bye T-Mobile, have fun laying off the employees who are paying the price of poor executive foresight, try not to act surprised when you first see buyout price for your spectrum, and don’t worry about a customer like me, did I mention the $200 ETF? Odd, I just noticed an AT&T, LTE HTC One X on Amazon for $130.

    • Gary

      Right except T-Mobile isn’t going out of business and T-Mobile is still turning a profit. Sprint operated for years without a profit so nice try but I highly doubt Mr Humm will be calling you for business advice. And by the way, your story was full of holes. 

  • Whoareyou

    easy way to resolve issue… Follow Contract dispute process and you’ll be all set!!!