Consolidation Adapts Cost Structure as T-Mobile Strengthens its Competitive Position
BELLEVUE, Wash. — Mar. 22, 2012
T-Mobile USA, Inc. announced today it will consolidate its call center operations from 24 to 17 facilities by the end of June.
“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. “These are not easy steps to take, but they are necessary to realize efficiency in order to invest for growth.”
Call centers scheduled for closure include: Allentown, Pennsylvania; Fort Lauderdale, Florida; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colorado and Redmond, Oregon.
This consolidation effort will result in 1,900 net job reductions. T-Mobile employs approximately 3,300 people at the seven affected facilities. However, the company will begin hiring immediately at the remaining 17 call centers and expects to fill as many as 1,400 positions to continue to meet customer needs. T-Mobile is inviting employees from the seven call centers, planned for closure, to transfer to another facility. Employees who transfer will be offered relocation assistance.
“We have tremendous customer service representatives who are highly-skilled and dedicated to serving our customers. We hope as many as possible pursue transfers and stay with T-Mobile,” said Larry Myers, Chief People Officer of T-Mobile.
Affected call centers will remain open for three months following Thursday's announcement and employees will continue to work during this time. Those employees who choose not to transfer to a remaining center, and are employed on the date the center closes, will be offered transition packages including severance pay and outplacement support. T-Mobile is establishing on-site career centers at all seven facilities to provide employees with a personal career coach and access to job search training, tools and technologies. T-Mobile will pay for two months of continued health care coverage for eligible employees who elect COBRA benefits.
Additionally, T-Mobile will restructure and optimize operations in other parts of the business, which will take place by the end of second quarter of 2012. Efficiencies resulting from these changes will fuel investments that further strengthen T-Mobile’s competitiveness in the marketplace. Some of these strategic investments - announced in February as part of T-Mobile’s reinvigorated Challenger strategy - include: a $4 billion modernization of its network and the
planned launch of Long Term Evolution (LTE) technology in 2013, plans to revitalize the T-Mobile brand, and an investment in 1,000 new business sales positions.
T-Mobile USA, Inc. announced today it will consolidate its call center operations from 24 to 17 facilities by the end of June.