Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
UCS Invicta: Integrated Flash
Deploy flash memory technology to
deliver peak workload performance.

Find out more>>
Contact Centers
Real-time info services with Neustar
Average Rating:
Rate this article:  
T-Mobile Slashes 1,900 Jobs, AT&T Blames Failed Merger
T-Mobile Slashes 1,900 Jobs, AT&T Blames Failed Merger

By Jennifer LeClaire
March 26, 2012 10:14AM

Bookmark and Share
If there is a silver lining to the 3,300 jobs lost at T-Mobile's closed call centers, T-Mobile said it would begin hiring immediately at its other 17 call centers and expects to bring on as many as 1,400 new call center operators to keep up with customer demand. T-Mobile is inviting employees from the seven closing facilities to transfer.
 


In a move many industry watchers expected after the failed AT&T merger, T-Mobile is cutting jobs. However, the wireless carrier is perhaps shedding a larger number than some hoped, as it moves to consolidate its call center operations from 24 to 17 facilities by the end of June.

Call centers scheduled for closure are in Allentown, Pa.; Fort Lauderdale, Fla.; Frisco and Brownsville, Texas; Lenexa, Kan.; Thornton, Colo.; and Redmond, Ore. Altogether, T-Mobile said, it will shed 1,900 jobs. T-Mobile employs about 3,300 people at the seven facilities.

"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."

T-Mobile to Rehire 1,400

If there is a silver lining to the 3,300 jobs lost at the closed centers, T-Mobile said it would begin hiring immediately at its other 17 call centers and expects to bring on as many as 1,400 new call center operators to keep up with customer demand. T-Mobile is inviting employees from the seven closing facilities to transfer to another location.

T-Mobile said affected call centers will remain open for the next three months and employees can continue working. Employees who choose not to transfer (with relocation assistance) from the company will be offered transition packages that include severance pay and outplacement support.

T-Mobile is setting up 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 also plans to pay for two months of continued health care coverage for eligible employees who elect COBRA benefits.

"A merger with AT&T likely would have consolidated the call centers, so the layoffs were likely regardless," said Rob Enderle, principal analyst at the Enderle Group. "Mergers like this generally have large layoffs to eliminate redundant services and it is as likely the layoffs would have been even deeper had the merger been approved."

Would AT&T Have Saved the Jobs?

AT&T, of course, disagrees and took the opportunity to blast the Federal Communications Commission for squashing the $39 billion acquisition. Jim Cicconi, AT&T's senior executive vice president of External and Legislative Affairs, pointed out that AT&T had promised to preserve those same call centers and jobs if the merger was approved. AT&T also predicted that if the merger failed, T-Mobile would be forced into major layoffs.

As Cicconi sees it, this is a reminder of why "regulatory humility" should be more than a slogan. The FCC may consider itself an expert agency on telecom, he said, but it is not omniscient. When it ventures far afield from technical issues and into judgments about employment or predictions about business decisions, it has often been wrong, Cicconi said.

"The other lesson is even more important, and should be sobering. It is a reminder that in government, as in life, decisions have consequences," he said. "One must approach them not as an exercise of power but instead of responsibility, because, as I learned in my years of public service, the price of a bad decision is too often paid by someone else."
 

Tell Us What You Think
Comment:

Name:

Skeptical:

Posted: 2012-03-26 @ 2:00pm PT
What AT&T didn't say is that they would reduce the number of employees at their own call centers if the merger went through.

maxpain:

Posted: 2012-03-26 @ 10:41am PT
Lies! Would AT&T guarantee that there'll be no slashing jobs if the merger went through? I don't think so.



UCS Invicta: Integrated Flash Why wait for the future? Unlock the potential of your applications and create new business opportunities today with UCS Invicta Series Solid State Systems. Take advantage of the power of flash technology. See how it can help accelerate IT, eliminate data center bottlenecks, and deliver the peak application performance and predictability your users demand. Click here to learn more.


 Contact Centers
1.   Call Center Training: Tips for Success
2.   Avaya Pressing Hard on Cloud-Based UC
3.   Comcast Customer Service Fiasco
4.   Google CEO Questions 40-Hour Week
5.   Why You Need To Hire a CCO


advertisement
Call Center Training: Tips for Success
Hire right, role play, and keep it real.
Average Rating:
Avaya Pressing Hard on Cloud-Based UC
Provides easier, faster provisioning.
Average Rating:
Comcast Customer Service Fiasco
Lessons to be learned for all companies.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Ruling Against Microsoft Raises E-Mail Privacy Concern
Microsoft has been ordered to hand over e-mails to law enforcers in the United States as part of a criminal investigation, even though the e-mail is stored at a data center in Dublin,Ireland.
 
Twitter Buys Password Manager Startup Mitro
Following on the heels of another acquisition earlier this week, Twitter is adding to its fold a password-manager security startup called Mitro, which in turn is releasing its code as open source.
 
Government Requests for Customer Data Skyrocket
Requests for customer data from the government jumped 50 percent in the first half of 2014, according to Twitter, which received more than 2,000 requests for user info from gov't agencies.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.