Earlier this week, T-Cell (TMUS) raised eyebrows when it confirmed current hypothesis that its CEO, Mike Sievert, will step down from his place on the firm after over 5 years.
In a press launch, T-Cell revealed that Sievert can be changed as CEO by the corporate’s present chief working officer, Srini Gopalan, efficient Nov. 1. Sievert, nevertheless, gained’t be leaving the corporate; he’ll as a substitute transfer on to the position of vice chair.
“Srini has been an incredible partner in shaping the future of T-Mobile as well as instrumental in leading our record growth this year and driving initiatives to serve customers in new ways and win them for life,” mentioned Sievert within the press launch. “One fact has become crystal clear: Srini is ready to lead.”
RTMNexus CEO Dominick Miserandino mentioned T-Cell’s CEO shakeup additional emphasizes its shift towards changing into a “digital-first company.”
“It’s a significant shift from an acquisition mindset to, in their own words: most data-driven, AI-enabled, digital-first company in the industry,” mentioned Miserandino. “It’s a different angle than the company was and the stock dropped 1% today so far.”
T-Cell’s drastic change in management and route comes after it flagged in its second-quarter earnings report for 2025 that whereas it attracted 830,000 new postpaid telephone prospects, its postpaid telephone churn (the variety of prospects who reduce their telephone service) elevated by 10 foundation factors year-over-year.
The lack of loyal prospects comes after T-Cell rolled out value will increase for its older telephone plans over the previous 12 months, which has pissed off prospects. It has additionally battled heightened competitors from cable firms that provide discounted telephone companies.
T-Cell Chief Working Officer Srini Gopalan will turn into CEO of the corporate on Nov. 1, 2025.
Picture supply: Galuschka/image alliance by way of Getty Photos
T-Cell plans to implement an aggressive change
As Gopalan is about to take over as CEO in November, T-Cell is quietly planning to implement a controversial change that may affect prospects and workers.
A leaked doc shared on Reddit by a person claiming to be a T-Cell worker reveals that T-Cell plans to make prospects solely depending on its T-Life app to deal with upgrades, new strains, account activations, and so forth.
The doc depicts a chart displaying that 85% of T-Cell’s telephone upgrades are at the moment orchestrated by way of the T-Life app. T-Cell plans for 92% of telephone upgrades to be performed by way of the app by November and 100% by January subsequent 12 months.
Additionally, 70% of latest line additions are at the moment carried out by way of T-Life. T-Cell needs to ramp that as much as 78% in October, 85% in November, and 100% in January.
Associated: T-Cell suffers huge boycott from prospects
On the subject of new account activations, T-Cell goals for 50% of these to be accomplished within the T-Life app by subsequent month, 60% in November, and 100% in January 2026.
The worker who shared the doc on Reddit expressed concern that the elevated dependence on T-Life would lead to customer support representatives dropping their jobs.
“I shouldn’t be posting this. But I don’t care. We literally won’t have a job by the summer of next year. I feel like tmobile will cut the bottom selling reps. If you’re in the bottom 20%, you’re done. Mark my words,” wrote the T-Cell worker within the Reddit publish.
T-Cell’s T-Life app beforehand acquired backlash from prospects
T-Cell first launched its T-Life app in January final 12 months. It marketed the app as a “simplified experience” that enables prospects to be extra self-sufficient by granting them the power to handle their very own accounts and companies.
The telephone provider even reportedly requires workers to encourage prospects to obtain the app, giving them money bonuses for every account they join T-Life.
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Nonetheless, T-Life has acquired sharp criticism from prospects for being too sophisticated to make use of. Some prospects have even walked out of shops on account of frustration navigating the app.
Throughout an earnings name on Jan. 29, Sievert mentioned prospects are “loving” the T-Life app as its utilization is quickly rising.
“Customers are loving it,” mentioned Sievert. “We said we’d see 40 million downloads by the end of the year, but we saw more than 50 million and with some incredible engagement numbers.”
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