john legere
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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.
TechCrunch obtained leaked audio of that call, which was said to be one of several calls held by T-Mobile leadership throughout the day to lay off staff across the organization. The layoffs come just two months after its contested $26 billion Sprint merger was finally completed.
On the call, Kirby said T-Mobile was eliminating Sprint’s inside sales unit (BISO), a sales division that focuses on small businesses across the United States. The executive didn’t say exactly how many staff were laid off. Almost 400 people were in the phone meeting, a person on the call told TechCrunch.
Kirby is heard saying that the division’s layoffs would make way for 200 new positions, and encouraged employees to apply for one of the new positions using T-Mobile’s external careers page, spelling out the web address on the call twice. Some impacted employees may be able to shift to new roles, though the carriers don’t appear to have done much to facilitate the moves beyond encouraging staff to apply.
The employees who were laid off Monday will keep their jobs for another two months until August 13, said Kirby. A person on the call told TechCrunch that the severance packages amount to two weeks pay for every year on the job, but some employees may get more.
Employers are required to give two months notice in advance of mass layoffs under the WARN Act.
T-Mobile leadership held several conference calls with employees to announce layoffs across various Sprint divisions on Monday on both the business and consumer sides, according to the person on the call. The person said that they were unaware of any T-Mobile employees affected by the layoffs.
“They cut people from every division, but BISO seems to have been hit the hardest,” the person said.
One employee described their frustration. “I just feel the company needs to acknowledge the pain they are putting people through during a pandemic — severance package or not.”
When reached, a T-Mobile spokesperson did not comment by our deadline.
T-Mobile closed the Sprint merger on April 1. The deal found the nation’s third- and fourth-largest carriers merged in a manner they insisted would keep them more competitive with the No. 1 and No. 2 services — AT&T and Verizon (TechCrunch’s parent company) — which have long dominated the category.
The merger was, understandably, subject to intense regulatory scrutiny in the months leading up to its final approval, as it would effectively reduce the country’s key carriers to three down from four. Among T-Mobile’s chief selling points were the claim that — in addition to increased competition — a merger would create more jobs.
“In total, New T-Mobile will have more than 11,000 additional employees on our payroll by 2024 compared to what the combined standalone companies would have,” then-chief executive John Legere claimed in an open letter last April.
The exact effect the merger has had on employee headcount isn’t entirely clear, but last month The Communications Workers of America estimated that it would impact some 30,000 jobs due to the consolidation of retail stores and corporate roles.
“T-Mobile has made no written, verifiable commitments to the FCC to protect jobs,” the union wrote. “While T-Mobile has tried to muddy the waters with vague loophole-ridden pledges to maintain jobs for current T-Mobile and Sprint employees, three-quarters of current employees selling the companies’ services work for authorized dealers and are not covered by the jobs pledge — 88,000 workers in total.”
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After months of regulatory maneuvering, T-Mobile and Sprint officially completed their $26 billion merger today. The new combined parent company is called T-Mobile and will now trade on the Nasdaq under the ticker symbol TMUS with Sprint no longer trading on the NYSE.
For consumers, it will seemingly take a little time before the effects of the transition are meaningfully felt. T-Mobile did not comment on the future of the Sprint brand in today’s announcement, but they have previously promised that subscribers will have access to “the same or better rate plans” for three years as part of the deal.
Alongside news of the merger being finalized, T-Mobile shared that its CEO transition is taking place early. John Legere was supposed to stay on until the end of April, but Mike Sievert has been appointed CEO a month early, effective immediately. Sievert was previously T-Mobile’s COO.
Legere has led T-Mobile since 2012, mounting a turnaround at the company framing the service as a low-cost alternative to the duopoly of AT&T and Verizon. (Disclosure: TechCrunch is owned by Verizon Media, but this does not affect our coverage.) The company’s years-long “Un-carrier” marketing push often featured Legere and his antics prominently.
Legere is still on the company’s board of directors, but he’ll be stepping down at the end of his term through June.
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He’s reportedly not going to take over WeWork, but John Legere is definitely on his way out of the CEO role at T-Mobile, the carrier that is currently merging with SoftBank-controlled Sprint. Today the carrier and Legere confirmed that Mike Sievert — currently T-Mobile’s COO — will succeed Legere as CEO on May 1 of 2020. Legere will stay on the board.
Neither Legere nor T-Mobile commented on what his next move will be, and specifically if this will pave the way for him to take over the top job at WeWork. There had been reports that Legere — something of a turnaround specialist — was being lined up for the job at the very troubled office-space startup, which had to shelve its IPO earlier this year after showing poor financials amid questionable management that not only led to the departure of its founder Adam Neumann as CEO, but a strong devaluation of the company that resulted in SoftBank, as a major creditor, taking control.
The reports of Legere coming in to fix things at WeWork seemed to get refuted quite swiftly. However, the same “sources” that quashed that story also insisted he had “no plans” to leave T-Mobile. With elements of the report in doubt, that could put the WeWork rumors (or thoughts of other SoftBank roles, for that matter) back on the table. We’ve asked Legere directly and will update this post if he replies.
Legere has been with T-Mobile since 2012, where he used his irreverent personality to directly spar with the industry while at the same time position the carrier — which has long trailed bigger competitors like AT&T and Verizon (which owns us) in size — as a growth story and different from the pack (hence the “un-carrier” marketing strategy). The stock price has over that time gone up, and the carrier is currently valued at around $65 billion. (Notably, the stock is down about 1.5% today on the back of this news.)
Sievert will be tasked with continuing the route that Legere set, T-Mobile said, “demonstrating that T-Mobile will remain a disruptive force in US wireless marketplace to benefit consumers.”
“I hired Mike in 2012 and I have great confidence in him. I have mentored him as he took on increasingly broad responsibilities, and he is absolutely the right choice as T-Mobile’s next CEO,” said Legere in a statement. “Mike is well prepared to lead T-Mobile into the future. He has a deep understanding of where T-Mobile has been and where it needs to go to remain the most innovative company in the industry. I am extremely proud of the culture and enthusiasm we have built around challenging the status quo and our ongoing commitment to putting customers first.”
“The Un-carrier culture, which all our employees live every day, will not change,” Sievert said in a separate statement. “T-Mobile is not just about one individual. Our company is built around an extraordinarily capable management team and thousands of talented, committed, and customer-obsessed employees. Going forward, my mission is to build on T-Mobile’s industry-leading reputation for empowering employees to deliver an outstanding customer experience and to position T-Mobile not only as the leading mobile carrier, but as one of the most admired companies in America.”
Regardless of whether this is a sign that SoftBank indeed has a job lined up for Legere at one of its other portfolio companies, such as WeWork, the changing of the guard makes some sense, as the merger with Sprint would leave a question mark over who would lead the combined business. The two companies were reportedly close to releasing a management line-up for the merged business earlier this year, but that has yet to happen. The merger is due to be completed early next year.
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Last year, four of the largest U.S. cell carriers were caught selling and sending real-time location data of their customers to shady companies that sold it on to big spenders, who would use the data to track anyone “within seconds” for whatever reason they wanted.
At first, little-known company LocationSmart was obtaining (and leaking) real-time location data from AT&T, Verizon, T-Mobile and Sprint and selling access through another company, 3Cinteractive, to Securus, a prison technology company, which tracked phone owners without asking for their permission. This game of telephone with people’s private information was discovered, and the cell carriers, facing heavy rebuke from Sen. Ron Wyden, a privacy-minded lawmaker, buckled under the public pressure and said they’d stop selling and sharing customers’ locations.
And that would’ve been that — until it wasn’t.
Now, new reporting by Motherboard shows that while LocationSmart faced the brunt of the criticism, few focused on the other big player in the location-tracking business, Zumigo. A payment of $300 and a phone number was enough for a bounty hunter to track down the participating reporter by obtaining his location using Zumigo’s location data, which was continuing to pay for access from most of the carriers.
Worse, Zumigo sold that data on — like LocationSmart did with Securus — to other companies, like Microbilt, a Georgia-based credit reporting company, which in turn sells that data on to other firms that want that data. In this case, it was a bail bond company, whose bounty hunter was paid by Motherboard to track down the reporter — with his permission.
Everyone seemed to drop the ball. Microbilt said the bounty hunter shouldn’t have used the location data to track the Motherboard reporter. Zumigo said it didn’t mind location data ending up in the hands of the bounty hunter, but still cut Microbilt’s access.
But nobody quite dropped the ball like the carriers, which said they would not to share location data again.
T-Mobile, at the center of the latest location-selling revelations for passing the reporter’s location to the bounty hunter, said last year in the midst of the Securus scandal that it “reviewed” its real-time location data sharing program and found appropriate controls in place. To appease even the skeptical, T-Mobile chief executive John Legere tweeted at the time that he “personally evaluated the issue” and promised that the company “will not sell customer location data to shady middlemen.”
It’s hard to see how that isn’t, in hindsight, a downright lie.
Sounds like word hasn’t gotten to you, @ronwyden. I’ve personally evaluated this issue & have pledged that @tmobile will not sell customer location data to shady middlemen. Your consumer advocacy is admirable & we remain committed to consumer privacy. https://t.co/UPx3Xjhwog
— John Legere (@JohnLegere) June 19, 2018
This time around, T-Mobile said it “does not have a direct relationship” with Microbilt but admitted one with Zumigo, which, given the story and the similarities to last year’s Securus scandal, could be considered one of many “shady middlemen” still obtaining location data from cell carriers.
Legere later said in a tweet late Wednesday that the company “is completely ending” its relationships with location aggregators in March, almost a year after the company was first implicated in the first location-sharing scandal.
It wasn’t just T-Mobile. Other carriers were also still selling and sharing their customers’ data.
AT&T said in last year’s letter it would “protect customer data” and “shut down” Securus’ access to its real-time store of customer location data. Most saw that as a swift move to prevent third-parties accessing customer location data. Now, AT&T seemed to renege on that year-ago pledge, saying it will “only permit the sharing of location” in limited cases, including when required by law.
Sprint didn’t say what its relationship was with either Zumigo or Microbilt, but once again — like last year — cited its privacy policy as its catch-all to sell and share customer location data. Yet Sprint, like its fellow carriers AT&T and T-Mobile, which pledged to stop selling location data, clearly didn’t complete its “process of terminating its current contracts with data aggregators to whom we provide location data” as it promised in a letter a year ago.
Verizon, the parent company of TechCrunch, wasn’t explicitly cleared from sharing location data with third-parties in Motherboard’s report — only that the bounty hunter refused to search for a Verizon number. (We’ve asked Verizon if it wants to clarify its position — so far, we’ve had nothing back.)
In a letter sent last year when the Securus scandal blew up, Verizon said it would “take steps to stop” sharing data with two firms — Zumigo and LocationSmart, an intermediary that passed on obtained location data to Securus. But that doesn’t mean it’s off the hook. It was still sharing location data with anyone who wanted to pay in the first place, putting its customers at risk from hackers, stalkers — or worse.
Wyden. who tweeted about the story, said carriers selling customer location data “is a nightmare for national security and the personal safety of anyone with a phone.” And yet there’s no way to opt out — shy of a legislative fix — given that two-thirds of the U.S. population aren’t going to switch to a carrier that doesn’t sell your location data.
It turns out, you really can’t trust your cell carrier. Who knew?
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After an aggressive response to his company, T-Mobile, being called out for being anti-Net Neutrality on its new “Binge On” product by the EFF, CEO John Legere has backtracked a bit. In case you missed it, he flippantly asked “Who the fuck is the EFF?” during a Twitter Q&A last week. EFF supporters told him. In droves. Here was his apology today, which is of course… Read More
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Welp, it happened. T-Mobile CEO John Legere decided to field questions about the “Binge On” program the company launched. Is it great? Is it throttling? The EFF has its thoughts. The organization also decided to participate in Legere’s Twitter Q&A which led to this gem: .@EFF pic.twitter.com/pv6V4oOJwS — John Legere (@JohnLegere) January 7, 2016 “Who the… Read More
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As the latest year of the future folds into the next, the most bombastic/annoying/entertaining of CEOs sets his gaze on the technologies that will define the wireless space and the company he is at the helm of. Just as he did last year, T-Mobile CEO John Legere published his list of predictions for tech in 2016. Though most of his predictions won’t surprise anyone (they’re pretty… Read More
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