EDINBURG, Va. (WFXR) – Shenandoah Telecommunications Company (Shentel) announced on Tuesday that it is implementing a reduction in its workforce ahead of the closing of the pending sale of its wireless assets and certain liabilities to T-Mobile US, Inc.
The organization’s restructuring plan is expected to impact approximately 340 employees, which equates to 30-percent of the company’s workforce across its service area.
According to the company, 90-percent of the reductions involve employees who support wireless operations and who will not automatically transfer to T-Mobile as part of the transaction.
The majority of those impacted by the layoffs will exit the company in 2021 – following the closing of the pending sale.
“We announced to our employees today the necessary plans to begin to reduce the size of our workforce for the anticipated divestiture of our wireless assets and operations. Although this change was anticipated, its impact will cause disruption and uncertainty for the affected employees and their families,” said President and CEO, Christopher E. French. “We are coordinating with T-Mobile to assist in transitioning as many of the affected employees as possible to T-Mobile following closing of the transaction. We are proactively providing career transition services to all impacted employees, regardless of whether they are hired by T-Mobile, to help them during this time. Additionally, we will provide severance pay and benefits, inclusive of the new American Rescue Plan Act COBRA subsidy requirements, to all impacted employees who are not hired by T-Mobile. The Company also plans to provide a special one-time 401(k) contribution to all eligible employees, as well as a one-time cash bonus payment to all eligible impacted employees, to assist and support our employees during this transition.”Christopher E. French, Shentel’s President & CEO