UScellular (NYSE: USM) has announced plans to lay off 497 employees at 32 locations across Iowa, according to a recent filing on the state’s Worker Adjustment and Retraining Notification (WARN) website. However, the move may not spell permanent job loss for many affected workers, according to the Des Moines Register.
The layoffs are tied to a $4.4 billion deal announced in May 2024, in which UScellular agreed to sell the majority of its wireless operations, including customer accounts, retail stores, and 30 percent of its spectrum assets, to T-Mobile (NYSE: TMUS), Inside Towers reported. The transaction is expected to close by mid-2025, pending regulatory approval and other standard conditions.
In a letter to federal officials, UScellular stated that many employees impacted by the transition could be offered positions with T-Mobile once the deal is finalized.
“We anticipate this pending sale to close in mid-2025… and we are committed to working with every associate to ensure a smooth transition,” said Chris Bauer, UScellular’s Communications Manager. “This includes severance packages and job support. T-Mobile has also agreed to offer employment opportunities to at least a majority of our associates.”
The WARN filing noted that layoffs will begin on June 2, with store closures cited as the reason. The largest group affected is at a Cedar Rapids facility on 49th Ave. Dr. S.W., where 183 employees will be laid off. Other impacted sites include a store in Sioux City, with just five workers, and eight additional stores in Polk, Story, and Warren Counties employing a total of 94 staff, the Des Moines Register reported.
Nationwide, UScellular expects to cut approximately 4,100 positions as part of the T-Mobile acquisition, according to a March 26 letter submitted to the U.S. Department of Employment Services.
Though many workers are facing layoffs, the pending deal could mean they simply exchange one company logo for another as they transition to new roles within T-Mobile.
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