Yet More Layoffs Hit Sprint/T-Mobile, Despite Promises This Assuredly Wouldn't Happen

from the refusing-to-learn-from-experience dept

Before regulators signed off on T-Mobile’s $26 billion merger with Sprint, executives like former CEO John Legere told anybody who’d listen that the merger would create oodles of new jobs from “day one.” With the ink barely dry on the deal, it’s abundantly clear that’s not happening.

Last month, T-Mobile laid off an estimated 6,000 employees from its Metro prepaid division, layoffs that had everything to do with the merger, and nothing to do with the COVID-19 crisis. And on June 15th, hundreds of Sprint employees were unceremoniously fired as part of a six minute conference call during which nobody was allowed to ask questions:

“In a conference call on Monday lasting under six minutes, T-Mobile vice president James Kirby told hundreds of Sprint employees that their services were no longer needed. He declined to answer his employees? questions, citing the ?personal? nature of employee feedback, and ended the call.”

Cool. Cool.

This was all ridiculously predictable. There’s 40 years of documented US telecom history showing that the elimination of a major competitor reduces competition and raises prices (oh hi, Comcast). Global markets (Canada, Ireland) have also made this clear. Such deals almost universally result in thousands of layoffs as redundant retail, support, and management positions are culled. It’s why similar deals of this type (AT&T’s 2011 acquisition of T-Mobile, T-Mobile’s 2014 acquisition of Sprint) were blocked. This isn’t a debate topic. It’s not a murky subject. Telecom consolidation routinely ends badly for employees and customers.

Economists made all of these points to the DOJ and FCC, but they were unceremoniously ignored. First by an FCC that couldn’t bother to even read its own staff analysis before rubber stamping the a merger it helped cook up behind closed doors, then by a DOJ whose “antitrust” boss personally escorted the deal to fruition while ignoring all criticism.

If you go back and look at some of ex-CEO John Legere’s blog posts from a few months ago (which I’m sure won’t be around much longer), the CEO repeatedly promised that the merger would be “job positive” from “day one”:

“So, let me be really clear on this increasingly important topic. This merger is all about creating new, high-quality, high-paying jobs, and the New T-Mobile will be jobs-positive from Day One and every day thereafter. That?s not just a promise. That?s not just a commitment. It?s a fact. To achieve what we?re setting out to do ? become the supercharged Un-carrier that delivers new value, ignites competition and delivers nationwide real 5G for All ? the New T-Mobile will provide an amazing and compelling set of services for consumers.”

Legere was so breathlessly offended by statements to the contrary, he tried to insist that union officials were lying — before reminding everybody he testified under oath about the deal’s looming job explosion:

“We also keep seeing the opposition try to use projected layoff numbers from an analyst?s projections that were based on a completely different deal at a completely different point in time to discredit this merger. It?s SO bad that the head of the Communications Workers Association (CWA) was bold enough to refer to those completely unrelated numbers in a CONGRESSIONAL HEARING. I guess if the real numbers don?t tell the story you want, you can just make up new ones? It?s actually offensive. At the hearings, I raised my right hand and swore under oath to tell the TRUTH… and the truth is that the New T-Mobile will CREATE JOBS.”

In the last two months alone we’ve seen 6,000+ non-Covid related layoffs and a 12 hour merger outage (purportedly due to merger integration headaches), so clearly everything is going swimmingly.

For T-Mobile, the COVID-19 crisis comes at an opportune time. It will allow the company to blame any layoffs on the pandemic, even if industry insiders have made it clear the layoffs were inevitable and already in the works. Meanwhile, John Legere has since sold his $17.5 million NYC penthouse in NYC To Giorgio Armani, and is likely already hard at work on his next act, during which we’ll all pretend none of this ever happened. So as usual, we’ll learn absolutely nothing from mergermania history, leaving us to repeat the process all over again down the lane.

Filed Under: , , , , ,
Companies: sprint, t-mobile

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Yet More Layoffs Hit Sprint/T-Mobile, Despite Promises This Assuredly Wouldn't Happen”

Subscribe: RSS Leave a comment
16 Comments
David says:

Makes one wonder

At the hearings, I raised my right hand and swore under oath to tell the TRUTH… and the truth is that the New T-Mobile will CREATE JOBS."

How did the tobacco industry manage to get on the hook for smoking-related health hazards? It would seem like decades of denial in straight opposition to the facts are a perfectly workable strategy.

Anonymous Coward says:

Re: Congress

…Congress is now freely spending TRILLIONS of Dollars it does not have — and was deeply in debt long before the pandemic.
Congress is thoroughly irresponsible and will destroy the US economy if congressional politicians continues their plunder.

Layoffs across the economy are the norm now.

The US economy is formally in Recession and will formally enter Depression this fall.

Dollar debasement/inflation will devastate the standard of living of all but the wealthiest Americans.

Worry about that.

This comment has been deemed insightful by the community.
This comment has been deemed funny by the community.
Oblate (profile) says:

Let’s see, made blatant lies to the public, to regulators, to congress under oath, called those noting facts that undermine his position liars, selling out and screwing over hundreds of his own employees, and (potentially) thousands of his former customers. Is that correct? Looks like someone has an eye on political office in 2024! Any word on sexual harassment claims? Not to worry, there’s still plenty of time.

Koby (profile) says:

Take It Back

Now that the basis for the merger has been revealed to be untrue, the unemployed workers ought to have recourse to undo the merger and get their jobs back.

Sadly, there probably isn’t any legal mechanism to roll back a merger based on faulty premises.

The only solution I can think of is that in the future, employee unions should attempt to sign a long term contract with the merging companies, and when the corporations refuse, use that as evidence during the merger approval process.

Anonymous Coward says:

Re: Take It Back

T-mobile regularly abuses the law regardless. They sign union contracts, then "secretly" approach workers one-by-one to fire them illegally and openly say "if you don’t basically agree to quit right now, and tell the union it was YOUR decision to go, we will fuck your entire career over and make sure you’re made totally unemployable".

They’ve even blatantly told workers they want rid of (who haven’t done anything wrong) that they will ‘hint’ publicly that they were fired for sex offences.

They did this in the UK, the US and Europe. They’re law-breaking scum.

Bartonyma (user link) says:

how to tell if a vietnamese girl likes you

Copying entries to a new profile

Vietnam precise records 16,637 new nearby Covid cases

The three localities with the very best numbers of new cases are Hanoi with 2,884 totes, Da Nang with 983 scenarios and Hai [url=https://www.bestbrides.net/signs-that-vietnamese-women-like-you/%5Dhow to tell if a vietnamese girl likes you[/url] Phong with 722 sufferers. Vietnam has recorded 108 cases infected with the Omicron variant, contains three community cases. 68 of them are in Ho Chi Minh City, 27 across Quang Nam, Three from Da Nang, Two both equally in Thanh Hoa, Khanh hoa and Quang Ninh, and each in Hanoi, Hai Duong, Hai Phong and big An. 152 deaths were added to the nation’s database on Thursday, for 13 in HCMC, 12 just about every single in Dong Thap, Vinh much time and Kien Giang, Nine every individual in Soc Trang, Tien Giang plus Hau Giang, Six either in Tay Ninh, An Giang and david Tre, Four both equally in Hoa Binh and Ba Ria Vung Tau, Three each individual one in Binh Thuan, Bac Ninh, Ha Giang as well as Binh Dinh, Two just about in Khanh Hoa and Ca Mau, and something each in Dien Bien, Nghe an excellent, n’ Nang, Phu yen, Dak Lak and as a result Lam Dong. The amount of deaths so far is 36,266, Or with 1.7 percent of all contamination. 5,736 Covid 19 patients were announced reinstituted on [find out more.] About Vietnam data files 16,637 new local Covid casesVit Nam refutes ‘false’ claim on militia arrangement in East SeaLk Lake, A in peace spot in the Central Highlands16,715 new COVID 19 cases reported on ThursdayMasan Group Top ASEAN consumer pick in Bank of America16,715 new cases announced on January 20Vit Nam, Hungary foster parliamentary cooperationApple discontinues full size HomePod, to pay attention to HomePod miniiPhone demand weakness just ‘noise,’ outlook continues strong, Analyst saysAd insured HBO Max option coming in JuneApple Watch SE returns to $259, Cellular $309 in today’s Amazon dealsDaVinci Resolve and Fusion now formally support M1 Macs.
[—-]

Add Your Comment

Your email address will not be published.

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...
Loading...