As if things could not get too much worse for Deutsche Telekom’s (PINK:DTGEY) T-Mobile USA unit, they did for another 900 employees of the company who will lose their jobs during the course of the year.
The fourth largest mobile provider in the U.S. behind Verizon (NYSE:VZ), AT&T (NYSE:T) and Sprint (NYSE:S), T-Mobile’s action comes on the heels of a cut of 1,900 employees announced earlier this year.
According to Reuters, in March T-Mobile said it would close 7 call centers which employ 3,300 people. T-Mobile offered to transfer employees of those centers, and that it planned to add another 1,400 jobs at their remaining 17 call centers.
Both moves are in response to an effort to save money for network investments that T-Mobile estimates at $4 billion. T-Mobile was thwarted by U.S. regulators in their attempt to merge with AT&T earlier this year. The breakup was however, profitable for T-Mobile, who received a breakup fee of $3 billion from AT&T.
Written by Marc Bastow, Assistant Editor at Investorplace.com. As of this writing, Mr. Bastow is long VZ.