EchoStar has cut 500 jobs in its Boost Mobile division following the company's $23 billion spectrum sale to AT&T.
As reported by Fierce Wireless last week, around 500 employees from within EchoStar's wireless network deployment and engineering groups, most of which fall under the Boost brand, lost their jobs in late August.
The job cuts follow EchoStar's decision to sell certain wireless spectrum licenses to carrier AT&T.
In the process, EchoStar said it would now operate as a hybrid mobile network operator as it provides wireless services under its Boost Mobile brand, effectively becoming an MVNO instead of the fourth carrier it hoped to become to compete in the market against the "big three" telcos - AT&T, Verizon, and T-Mobile.
The deal will see AT&T acquire approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum for approximately $23bn in an all-cash transaction.
Parent company EchoStar rebranded its wireless network from Dish Wireless to Boost Mobile last year. This division is where the majority of its wireless network engineers worked.
“Due to Federal Communications Commission (FCC) actions, the recent announcement of EchoStar selling spectrum licenses to AT&T significantly impacts the company’s 5G wireless network deployment unit,” said the company in a statement to Fierce.
“With elements of our network to be decommissioned over time, the company will eventually not house a wireless network deployment workforce. After thorough review of our business operations moving forward, we have made the difficult decision to reduce our network deployment workforce."
The majority of those impacted by the cuts were notified by August 28.
It's currently unknown whether the company's retail presence will slim down following the sale. DCD has contacted Boost Mobile for information.
EchoStar acquired its Boost Mobile business as part of Dish Network’s role in the T-Mobile/Sprint merger, completed in 2021.
In 2023, Dish Network merged with EchoStar, leading to Boost Mobile becoming the brand name of the company's mobile network.
EchoStar was spun out from Dish back in 2008, as Dish held onto the TV business while shedding the satellite infrastructure that beamed content into them.
The re-merger between the two combined Dish's Pay-TV business and its 5G wireless network with EchoStar's satellite communications solutions.
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