US Cellular to cut 4,100 jobs following T-Mobile acquisition

T-Mobile's recent acquisition of US Cellular has set off a restructuring plan at the fourth-largest US telecom company. The wireless phone provider has confirmed that the change will result in 4,100 job cuts. The workforce reduction is part of an effort to integrate the acquired operations with T-Mobile's existing network systems and streamline business processes. Company officials indicated that the decision follows detailed financial reviews and regulatory filings, aiming to eliminate redundancies and improve operational efficiency. The layoffs are expected to affect various departments across the organisation, with notifications to affected employees scheduled to begin “on June 2 or within 14 days thereafter.” An SEC filing from December 31, 2024, states that the company nearly has "4,100 full-time and part-time associates."
However, a majority of the affected employees are expected to be offered roles with T-Mobile, complete with compensation and benefits that match or exceed their current packages, according to a US Cellular official. The layoffs will affect staff at corporate-owned stores in Cedar Rapids, Coralville, and Iowa City, as well as employees at a call center in southwest Cedar Rapids. This comes after T-Mobile agreed to purchase UScellular's wireless operations and select spectrum assets in a transaction estimated at $4.4 billion in May 2024. The deal is expected to close by mid-2025.

In a letter sent to James Clopton, program manager with the U.S. Department of Employment Services, UScellular employee relations director Izik Youker wrote:
“We write to inform you that United States Cellular Corporation ("USCC") plans to sell all of its wireless operations, customers, and approximately 30% of its licensed spectrum to T-Mobile US, Inc. ("T-Mobile"). Consistent with these plans, approximately 4,100 employees will be permanently separated from employment with USCC Management Services, LLC at personal locations used by employees working remotely as well as the corporate-owned locations identified on Exhibit A. Employment separations are planned to commence on June 2, 2025 or within fourteen days thereafter. However, USCC has made arrangements with T-Mobile to offer employment to a majority of these employees at a salary or wage rate and with benefits that, when taken as a whole, are no less favorable than these employees' current salary or wage rate and benefits
This announcement and the above timetable are based on the best information currently available. However, various factors may still affect these plans and the timing of employee separations.
This letter is not an admission that any employment separation that takes place as a result of this transaction constitutes a covered event under the federal Worker Adjustment Retraining and Notification Act or any applicable state counterpart. If you have any questions or need additional information, please contact me by telephone at 773-399-4130 UScellularHR@ uscellular.com.”
The letter also includes the locations used by employees working remotely, as well as the company-owned locations.