T-Mobile had somber news for employees today announcing plans to close down 7 of its 24 call centers, eliminating 1,900 jobs nationwide with more job cuts likely to come. The consolidation of its call centers is expected to complete by the end of June and the cost savings is aimed at diverting more funds towards its $4 billion network upgrade to 4G LTE.
The call centers to be closed are located in Allentown, Pennsylvania; Fort Lauderdale, Florida; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colorado; and Redmond, Oregon. It will actually eliminate 3,300 jobs, but 1,400 new positions will be created for the remaining 17 call centers. T-Mobile currently has 36,000 employees.
The move is part of a larger restructuring strategy to stay competitive. T-Mobile had bled a lot of customers during the time it was anticipating a $39 million merger with AT&T. That deal ultimately crumbled, although it did leave T-Mobile pocketing a $4 billion breakup fee that included $3 billion cash and $1 billion in spectrum from AT&T.