T-Mobile cost-cutting hits shops


The new parsimony and cost-cutting drive brought to T-Mobile UK by managing director Richard Moat (pictured) has been felt on the shop floor as T-Mobile’s retail estate has seen a reduction in overtime, recruitment and commissions, and an increase in redundancies.

T-Mobile placed a total recruitment ban across all its stores on August 14. Store managers were instructed via an all-store conference call not to recruit new staff if existing ones leave.

Store staff overtime has been reduced, in some cases by as much as 100 hours per month, resulting in a number of staff losing some of their weekly hours or even becoming redundant.

T-Mobile has offered staff who have seen their hours drop significantly the chance to relocate, but it has also instructed staff stores will likely close in locations where there is overlap.

Also, commission for migrating prepay customers to contracts, a big earner for staff, has been reduced from a possible £6 per sale to just 50p per sale. 

Other areas affected include limits on stationery and uniform orders. “There are a lot of financial restrictions. This will hinder sales, especially if commission comes down and there are fewer staff in store,” said one staffer.

A T-Mobile spokesperson said: “In line with our new strategy, and to operate effectively in this economic climate, T-Mobile is constantly reviewing performance and costs.”