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T-Mobile Confesses: Not Having The iPhone Caused 1,900 Layoffs

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T-Mobile said Friday it will cut 1,900 call center jobs in an effort to save money. In a memo to employees, CEO Philip Humm explained:

"The reality is our cost structure must be better optimized to match our customer base and call volumes."

Fair enough—but that's not the explanation he gave last month on T-Mobile's Q4 2011 earnings. At that time, he said the reason his company is losing business is because it cannot advertise the iPhone to its customers.

T-Mobile, which does not have a deal with Apple to sell the iPhone, lost 1.6 million customers last year, with contracts falling to 24.8 million, down from 26.5 million in 2010. Humm said at the time:

"Branded contract losses improved through the third quarter of 2011, however the launch of the iPhone 4S reversed this trend to a branded contract 
customer loss of 706,000 in the fourth quarter of 2011."

“... not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011."

Q4 2011 revenue fell to $4.57 billion from $4.69 billion in 2010.

To stem the losses, T-Mobile is pressuring its workers to sell more and more stuff to customers who call up asking for help. The micromanaging is becoming "ridiculous," according to this angry T-Mobile employee, as the company makes workers' call scripts longer and longer:

"It is just insane the amount of stuff we are supposed to sell and go over as part of the 'Complete Solution'. It just seems like they keep adding more and more everyday. They need to put themselves in the customers' shoes. I try and think about all of my purchasing experiences and I would not want to sit through all of the nonsense they want us to talk about."

AT&T blamed the FTC for not approving its merger with T-Mobile, and implied that the merger, which would have brought Apple's iPhone to T-Mobile's customers, would also have saved those T-Mobile jobs:

"The FCC may consider itself an expert agency on telecom, but it is not omniscient. And when it ventures far afield from technical issues, and into judgments about employment or predictions about business decisions, it has often been wildly wrong."

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Jim is the former editor-in-chief of Insider's news division.Previously he was the founding editor of Business Insider UK.He has also been managing editor at Adweek, an advertising columnist at CBS Interactive, and a Knight-Bagehot Fellow at Columbia Business School. His work has appeared in Slate, Salon, The Independent, MTV, The Nation and AOL.His investigative journalism changed the law in the US First Circuit Court of Appeals (U.S. v. Kravetz), the Third Circuit Court of Appeals (North Jersey Media v. Ashcroft), New Jersey (In Re El-Atriss), and New York State (Mosallem v. Berenson).The US Supreme Court cited his work on the death penalty in the concurrence to Baze v. Rees, on the issue of whether lethal injection is cruel or unusual.He won the Neal award for business journalism in 2005 for a series investigating bribes and kickbacks in the advertising business.Here's a selection of his past stories:   • The alleged betrayal in these photos, texts, and emails cost Snapchat $158 million   • Inside the conspiracy that forced Dov Charney out of American Apparel   • The Evolution of Ev: The creator of Twitter, Blogger, and Medium has a plan to fix the mess he made of the internet   • THE "KNOCK-IN SHORT": Nigel Farage and the massive bet against the pound on the night of the Brexit vote   • eBay worked with the FBI to put its top affiliate marketer in prison   • How Dunkin Donuts ended up hiring a psychotic credit card thief as director of communications   • BEJEWELED: The definitive, illustrated history of the most underrated game ever   • The CEO of Publicis told us how he stared down a furious internal rebellion to bet the future of his $11 billion company on artificial intelligence   • FBX: The billion-dollar Facebook business that never happened   • The €150 million check-kiting scam that bankrupted Leo Burnett in Greece   • My Polaroids of the September 11 attacks led me into America's secret court system for terrorist suspects   • YouTube deleted 130 rap videos to help police fight street gangs responsible for thousands of stabbingsDisclosure: I own shares of Twitter (TWTR).