What's Going On With T-Mobile US Stock Thursday?

T-Mobile US, Inc TMUS disclosed plans to downsize its workforce by just under 7% or 5,000 positions.

The leading telecom company will incur a pre-tax charge of approximately $450 million in the third quarter of 2023 related to the workforce reduction.

The company reiterated the FY23 guidance it previously issued.

The corporate, back-office, and technology sectors will reflect most of the restructuring. The frontline retail and consumer care teams will remain unaffected. The roles affected are largely redundant.

The company looks to centralize some functions to boost efficiency, cut costs, and create broader managerial positions for extended growth prospects. 

In July, T-Mobile US reported second-quarter revenue of $19.2 billion, a decline of 2.6% year-on-year, missing the consensus of $19.3 billion. EPS of $1.86 beat the consensus of $1.69.

The company reported High-Speed Internet net customer additions of 509 thousand, more than AT&T Inc T, Verizon Communications Inc VZ, Comcast Corp CMCSA and Charter Communications, Inc CHTR combined for the 5th consecutive quarter.

The company expects fiscal year 2023 postpaid net customer additions of 5.6 million - 5.9 million, core adjusted EBITDA of $28.9 billion — $29.2 billion, merger synergies of $7.5 billion, and adjusted free cash flow of $13.2 billion — $13.6 billion.

Price Action: TMUS shares traded lower by 0.74% at $135.34 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.