T-Mobile completed its $26.5 billion acquisition of Sprint with high hopes and bold promises. Former CEO John Legere assured the public that the merger would be "jobs-positive" from day one. However, contrary to these assurances, significant job cuts and a shift toward digital operations have sparked concern among employees and industry watchers alike.
T-Mobile’s Bold Promise of Job Growth Fails to Materialize
Back in 2018, T-Mobile committed to growing its workforce beyond the combined headcount of both companies prior to the merger. Yet, at the time of the announcement, the company aimed to identify $43 billion in synergies—an ambitious target that typically necessitates job reductions to eliminate redundancies.
While the Communication Workers of America (CWA) initially predicted that up to 28,000 workers could face layoffs, the actual number of pink slips was far fewer. However, T-Mobile’s pledge to increase jobs remains unfulfilled even years after the merger's completion.
Public Opinion on Future Hiring
Poll Results (33 votes):
No way. With the transition to digital, jobs will be cut. 93.94%
Eventually, the carrier will need to hire more people. 6.06%
Back to VotingCompounding these issues, T-Mobile has pushed the adoption of its controversial T-Life app. This shift encourages customers and representatives to manage accounts digitally, and reduces the necessity for in-store staff. Critics argue T-Mobile’s move toward becoming a predominantly digital Mobile Network Operator will likely lead to store closures and further job cuts aimed at boosting profits and the company’s stock price.
Layoffs and Workforce Reduction Since the Merger
Examining Securities and Exchange Commission filings and Deutsche Telekom's quarterly reports reveals that combined employment at T-Mobile and Sprint totaled about 80,000 full- and part-time employees in 2019. By 2020, this figure had shrunk to 75,000, and by 2023, further declined to approximately 67,000 employees—a reduction of 16% since the merger's close.
Though full-time employee numbers dropped significantly, T-Mobile has incrementally grown its part-time workforce. For example, in the past year, Deutsche Telekom added nearly 2,500 U.S. employees, noting increases in retail staff to support T-Mobile’s expanding customer base.
However, a deeper look shows that much of the recent employment boost comes from acquisitions outside traditional wireless business areas, including advertising technology firms Vistar Media and Blis, as well as the larger purchase of UScellular, rather than organic growth within T-Mobile’s core operations.
Industry-Wide Job Declines Signal Tough Outlook
The general wireless sector has experienced similar job contractions. Verizon, for instance, announced plans to lay off 13,000 workers after having already cut 32,000 jobs since 2020. Meanwhile, AT&T, the third-largest U.S. wireless carrier, shed nearly 95,000 jobs over the same period.
With increasing automation, artificial intelligence, and digital transitions shaping the telecom landscape, prospects for employment growth in wireless remain bleak. T-Mobile’s pivot away from physical stores and human representatives only compounds these challenges.
Despite falling short on its job growth promise, T-Mobile potentially avoided a far worse employment crisis by completing the Sprint acquisition. Sprint’s struggling business could have resulted in even larger workforce reductions had the transaction not proceeded. For T-Mobile, acquiring Sprint’s valuable 2.5GHz mid-band spectrum—a critical asset for advancing its 5G ambitions—was the primary motive behind the purchase, rather than maintaining Sprint’s workforce.
