T-Mobile pledged Sprint merger would create jobs. But it’s already cut 500 in KC area
T-Mobile continues to thin the ranks of former Sprint workers in Overland Park, eliminating more than 500 positions in recent weeks.
The wireless carrier notified Kansas regulators on July 1 of plans to cut another 270 employees. That followed mid-June layoffs of 241 people working at the former headquarters of Sprint.
On June 17, T-Mobile cut more than 25 director positions. A dozen vice presidents were let go and five senior vice presidents were laid off. The cuts swept across divisions, including tax, sales, corporate communications, cyber security and finance.
On July 1, three more vice presidents were laid off, along with more than a dozen directors and 24 other management roles, according to records provided to the state.
“This is an ongoing process for T-Mobile,” a company official wrote to the Kansas Department of Commerce.
Source – KansasCity.com
What you need to know!
Sprint 401k Plan is a defined contribution plan with a stock bonus component, 401k feature, and ESOP component. This plan has a BrightScope Rating of 71. This plan is in the top 15% of plans for Total Plan Cost. Sprint 401k Plan currently has over 49,500 active participants and over $3.1B in plan assets.
That being said, the rating of 71 versus a top rating of 89 could equate to 11 additional years of work and or over $162,506 in lost savings.
The plans administrator is Collier W. Case and is handled in Overland Park, KS. The Recordkeeper is Fidelity.
One of the key concerns is that the plan only has 26 investment options which is common for most 401k type plans.
Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.
With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS
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