T-Mobile Plans Job Cuts Ahead of MetroPCS Merger

by Christopher Freeburn | March 8, 2013 11:13 am

T-Mobile deal[1]Unnamed insider sources tell The Seattle Times, that Deutsche Telekom‘s (PINK:DTEGY[2]) T-Mobile USA is planning a round of payroll cuts[3].

The wireless carrier, which is merging with MetroPCS (NYSE:PCS[4]), will trim 100 jobs at its Bellevue, Wash., headquarters. The layoffs will hit the company’s marketing and other administrative departments.

On Tuesday the waiting period since the merger’s announcement passed with out a challenge from the U.S. Department of Justice, meaning that the government does not plan to block the suit on anti-trust concerns.

Lawmakers have questioned the number of layoffs that could result from the MetroPCS merger[5]. A request was filed with the Federal Communications Commission (FCC) asking the regulator to require the company to avoid major job cuts. The FCC has yet to approve the merger.

Last year, T-Mobile slashed its workforce by 1,900 employees as it consolidated its call center operations[6].

Shares of Deutsche Telekom slipped fractionally in over-the-counter trading on Friday morning.

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/09/T-Mobile-storefront-630.jpg
  2. DTEGY: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTEGY
  3. planning a round of payroll cuts: http://blogs.seattletimes.com/brierdudley/2013/03/06/big-layoffs-at-t-mobile-headquarters-ahead-of-merger/
  4. PCS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PCS
  5. MetroPCS merger: https://investorplace.com/2012/10/whats-the-call-on-t-mobile-metro-pcs/
  6. as it consolidated its call center operations: https://investorplace.com/2012/03/t-mobile-to-cut-1900-jobs-and-then-some-dtegy-va-t-s-aapl/

Source URL: https://investorplace.com/2013/03/t-mobile-plans-job-cuts-ahead-of-metropcs-merger/
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