How Do T-Mobile’s Layoffs Affect My Internet and Phone Service?

The tech industry has endured recurring layoffs since 2022, and T-Mobile is now the latest to make job cuts. The “un-carrier” recently announced that it plans to let go of 5,000 employees—7% of its total staff.

It’s never a good thing when employees lose their jobs, and T-Mobile’s announcement comes after a lot of cuts have been made already. AT&T and Verizon have also laid off workers in recent months.

So how does it affect the customer? According to T-Mobile, probably not much at all. T-Mobile’s reduction in staff primarily affects “duplicative” middle-management and back-office roles. Retail and consumer care staff are not affected. Still, there may be some ripple effects you notice on your Wi-Fi or cell phone service. Read on for a breakdown of why job cuts are happening and how it might impact an internet user’s service.

How do layoffs affect internet and phone customers?

You probably won’t see effects on your service as a direct result of layoffs. However, there have been other changes in 2023 when it comes to plans and pricing. The general gist is that plans are getting (slightly) more expensive and some promos now cost extra to get.

$5 more a month for T-Mobile’s flagship unlimited plan

T-Mobile recently launched a new flagship unlimited plan, Go5G Plus plan, and it costs $5 a month more per single line than its predecessor, Magenta MAX. There’s also an even more deluxe plan, Go5G Next, which costs $100 per month.

$10 price hike for Verizon 5G home internet

Verizon raised the prices on its 5G Home Internet service. Verizon’s baseline 5G Home Internet plan previously cost $50 a month and the 5G Home Internet Plus plan cost $70 a month. Both plans have gone up by $10, with 5G Home Internet now costing $60 a month and 5G Home Internet Plus costing $80 a month.

The good news is you can still get a $25 discount on either plan if you bundle your internet with a qualifying Verizon phone plan.

Lower prices for Verizon unlimited phone plans—but extra fees for promos

Verizon also overhauled its phone plans in summer 2023. The prices are lower for the flagship unlimited plans, but the bundled extras you usually get for free now cost $10 each as add-ons.

$2.50 price hike for AT&T Unlimited Elite

AT&T raised the price by $2.50 per line for customers who still have its discontinued Unlimited Elite plan.

What internet companies have announced layoffs recently?

T-Mobile, Verizon, and AT&T have all announced layoffs as part of larger efforts to recover from stagnant profits and costly efforts to roll out 5G in the past year.

The job cuts come at a stark time for the tech world, as dozens of companies—including Google, Disney, and Facebook parent Meta—have let go of staff in large numbers amid rising inflation, high interest rates, and reduced consumer spending.

According to CNN Business, T-Mobile has seen a 7% dip in its stock value since August 2022, and sales have been down slightly as well. Those aren’t exactly bankrupt-worthy losses, but business analysts see the layoffs as a form of course correction. “What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” CEO Mike Sievert said in a message to employees.

AT&T has seen a reduction of 74,130 employees (32% of its staff) since 2021 as part of an $8 billion cost-saving effort. Verizon also made cuts to its Global Services program this year, but didn’t specify the number of employees who were laid off.

What are the negative effects of mass layoffs?

In general, mass layoffs can have long-term negative effects. Research suggests that employee turnover can increase and services can suffer due to a demoralized workforce. Brands can also see a negative impact on their public image if the layoffs alienate customers or the public.

But the layoffs at T-Mobile, AT&T, and Verizon seem to have been relatively uncontroversial so far, and it’s unclear how things will shape up in the coming months. So far it looks like you’re going to get the same service you’ve had as usual, with minor adjustments to plan options.