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T-Mobile is closing four of its Signature stores across the United States. The company president Jon Freier reportedly announced the news via a “Freierside Chat” this past Friday.
As one of the biggest national carriers, T-Mobile has a significant role in the US telecommunications industry. The company currently has over 110 million subscribers, and its 5G network covers 99% of Americans across 1.8 million square miles. In the past few months, T-Mobile has made the headlines for its layoffs, data breaches, and network outages. The carrier is now closing at least four Signature stores to cut costs.
The Signature-branded stores were initially launched to “wow customers and employees with ultimate Un-carrier experiences, like exciting events and product launches.”
T-Mobile has six Signature stores overall that provide customers with exclusive experiences. Four stores in San Francisco, Chicago, Miami, and Santa Monica will be closed soon. The impacted employees are offered to work in other T-Mobile stores or get a severance payment.
T-Mobile Signature stores remain active in New York City and Las Vegas.
Despite closing stores in four locations, T-Mobile has no plan (yet) to shut down its Signature stores in New York City and Las Vegas. The decision to close stores comes after the company missed the quarterly revenue estimations (via Yahoo). As per the reports, T-Mobile’s revenue dropped 2.5% from a year earlier due to fierce competition.
The monthly rent of each Signature store is reported to be around $500,000 or more per month. So T-Mobile can save up to $24 million annually by shutting down four stores. Other plans to cut costs and maximize profit include removing autopay discounts for customers paying via credit card since May 16.
Of course, T-Mobile is one of the many US-based companies laying off staff and selling unprofitable assets to cut costs. The economic forecasts for the coming years have caused companies to be more cautious in spending and use any tactic to reduce costs.
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