T-Mobile USA, which has made a name for itself in garnering customer service accolades from the likes of J.D. Power and Associates, said it plans to close seven call centers by the end of June, resulting in 1,900 job cuts. The carrier said the move will reduce its number of call centers from 24 to 17.
T-Mobile USA said the call centers set to be shuttered were located in Allentown, Pa.; Fort Lauderdale, Fla.; Frisco and Brownsville, Texas; Lenexa, Kan.; Thornton, Colo.; and Redmond, Ore. The carrier said it currently employed approximately 3,300 people at those locations.
“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 USA. “These are not easy steps to take, but they are necessary to realize efficiency in order to invest for growth.”
The carrier said it would also “restructure and optimize operations on other parts of the business” during the second quarter.
Following the closing of the centers, T-Mobile USA said it would begin hiring as many as 1,400 new employees at its remaining 17 call centers. Those impacted by the closings are being offered chances to transfer to another facility and will be offered relocation assistance. Those that do not choose to move will be offered transition packages, including severance pay and outplacement support.
T-Mobile USA announced last month an extensive network upgrade plan that will result in the carrier rolling out LTE services beginning next year. The carrier noted that the plan would cost the operator approximately $4 billion. As part of that initiative, T-Mobile USA said it expected to add 1,000 sales positions to pursue the enterprise market.
The Communications Workers of America, not surprisingly, came out against the T-Mobile USA’s actions claiming it “harms workers and communities, and in several locations, abuses taxpayers who provided funds to the company in exchange for employment and economic development.”
CWA cited a report last year from Good Jobs First that showed many of the locations set to lose call center jobs had provided millions of dollars in subsidies to T-Mobile USA. Those cities and subsidies included: $3.7 million from Frisco; $5.3 million from Brownsville; $3.9 million from Lenexa; and $1.3 million from Redmond.
CWA, which claimed a recent victory in New Jersey following the passage of the “Save New Jersey Call Centers Jobs Act,” was originally a supporter of AT&T’s acquisition attempt of T-Mobile USA citing AT&T’s claims to add jobs.
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