One question when considering the T-Mobile US, Sprint merger is whether it will result in job loss. The answer to that question is both yes and no. There was an event held at Sprint HQ for workers wondering about their job security. I think John Legere the CEO of T-Mobile was straight with the group and the answer is a clear maybe.
Every merger result’s in job loss to one extent or another. Some more so than others. After all there is no need for two people in every position. The savings from this is one of the big benefits to any merger because the cost of workers is one of the highest costs a company has.
How bad will job loss be with Sprint, T-Mobile merger?
I think there are two parts to this answer. One is the new company will not need two workers in every position. So yes, job loss will happen in my opinion. The only question is how much job loss. Two, is the fact that the wireless industry in general and the new T-Mobile in particular will be growing and expanding. That means they will need more workers.
Some workers will be able to move around. Others will be cut. The new T-Mobile will be in a great position. They get to evaluate the performance of every worker, keep the best and say goodbye to the rest.
So, if you are a worker, your best job security will come from your performance.
5G will create wireless growth engine
The move to 5G means the new company will also continue to grow as the wireless industry changes and expands. That means in general, T-Mobile should grow. They should add more than they cut. Especially over time.
Some workers who are hoping the new company will keep them all, may be disappointed. Every new company formed by a merger always sees job loss initially. That means workers, managers, executives and others.
T-Mobile has expressed interest in getting into wireless pay TV. Even though that has not really made much progress yet, it is still a major opportunity for growth.
Will their existing workforce be able to handle this new industry? Some will. Others won’t. That’s simply the way it always works.
Even though T-Mobile may continue to grow, there will be job loss
There will be a feeding frenzy of both T-Mobile and Sprint workers trying to hang onto their jobs or be transferred to another one. This gives the new T-Mobile the ability to keep the best of the best and let the rest go.
While that is great for T-Mobile as a company, it can be a real nail-biting time for every worker who wonders whether they will be cut.
Job loss is a simple reality after a merger. There are always too many workers for the needed jobs. There are however new jobs and new opportunities that will come up over the next few years.
Advice for T-Mobile, Sprint workers regarding job loss
So, my word of advice to every worker of both T-Mobile and Sprint is this. Improve your chances of being kept by the new company. Learn new skills. Become indispensable. Learn about the next industries the new T-Mobile will move into like wireless TV.
This is in your best interest. It will not only improve your chances of being kept by the company, but if you are cut it will also improve your chances of landing your next job simply because you are competitive and needed by players in the industry.
Every worker should prepare because they could indeed be cut. This is the unfortunate side of business. The underbelly. There is nothing we can do about it. Nothing we can do to stop it.
In the end, the industry continues to grow, and new jobs are created as innovation transforms the old into the new. That’s the good part. However, the actual process of change can feel like you are being pushed through a hamburger grinder for a while for the workers whose job is lost.
So, keep learning. Keep growing. Keep changing. Stay one step ahead of the hamburger grinder. That’s life for every one of us whether we are a worker, executive, investor or customer.
