T-Mobile announced that it will be laying off 5,000 employees, which represents approximately 7% of its workforce. The layoffs will primarily impact corporate roles and some technology roles. CEO Mike Sievert stated in a letter to employees that the layoffs are necessary to streamline operations, as the cost to attract and retain customers has increased significantly in recent quarters.

The affected employees will receive notice of their status by the end of September. T-Mobile plans to provide severance pay based on their tenure, along with at least 60 days of paid transition leave. Sievert emphasized that the company aims to handle the layoffs with sensitivity and compassion, stating, "We have zero intention of being a faceless - or heartless - company in a situation that is already difficult."

These layoffs come after T-Mobile reported better-than-expected profits and raised its subscriber forecast for the year. However, the company has faced challenges in subscriber growth due to competition from cable companies like Comcast and Charter Communications, which offer incentives such as free lines to attract new customers.

While T-Mobile's decision to cut jobs is aimed at streamlining operations, it remains to be seen how it will impact the company's ability to attract and retain customers in the highly competitive wireless carrier market.