Spectrum, which is also known as Charter Communications, has seen its customer numbers nosedive over the past few years as its cable business has suffered from the nationwide cord-cutting trend.
Cord-cutting, a trend that sparked in 2010, involves consumers canceling their cable services and subscribing to streaming platforms, which are often offered at more affordable prices than cable.
A recent survey from Pew Research Center found that 83% of Americans use streaming platforms to watch movies and TV shows, while only 36% are subscribed to cable or satellite TV services.
As this trend continues to grow legs, Spectrum lost 80,000 cable TV customers during the second quarter of this year, according to its latest earnings report. The company ended the quarter with roughly 12.6 million cable customers, which is about 5% fewer customers than it had during the same time period last year.
In addition to a startling decrease in cable customers, Spectrum also saw an uptick in internet customers pulling the plug on service. It lost about 117,000 internet customers during the second quarter, which is almost 6% higher than the number it lost during the same time period last year.
Many consumers are flocking to cheaper internet options such as fixed wireless internet (5G home internet), which is offered by phone carriers such as T-Mobile and AT&T.
A recent survey from Cord Cutters News revealed that only 40.2% of consumers use cable TV companies for their internet service, a significant decrease from 45% in late 2024. Also, roughly 11% rely on 5G home internet, up from 8.4% just a year ago.
Image source: Mordant/Bloomberg via Getty Images
Spectrum plans to deliver bad news to employees soon
As Spectrum battles dwindling customer numbers, it is reportedly planning to lay off 1,200 employees to streamline operations, according to a recent report from the Wall Street Journal.
The layoffs will impact 1% of the company’s workforce, which contains roughly 95,000 employees. The job cuts are reportedly only impacting corporate employees and those who work in back-office functions nationwide. Sales and service employees will not be affected by the layoffs.
The move comes after Charter CEO Chris Winfrey said during an earnings call in July that the company has recently doubled down on retaining employees.
Related: Spectrum launches bold new offer as cable TV customers flee
“Our investments in employees themselves are focused primarily on driving employee tenure, which drives better craftsmanship and customer service,” said Winfrey. “It starts with good-paying U.S. jobs and benefits, and then we expanded that with career paths, including self progression, training and education, and enhanced retirement benefits.”
More Telecom News:
- DirecTV customers threaten to leave after latest warning
- T-Mobile suffers massive boycott from customers
- Verizon quietly backtracks on harsh change that angered customers
The telecom giant has also invested in artificial intelligence to assist employees in servicing customers, which Winfrey said has contributed to “significant and sustainably improved service.”
Charter Communications is also in talks to merge with Cox Communications, which is expected to be completed in mid-2026. This move, valued at $21.9 billion, could result in future layoffs at Spectrum.
Spectrum’s competitors are also cutting jobs
Many of Spectrum’s competitors in the telecom industry have also recently conducted layoffs as they battle changing consumer behavior.
- In September, a leaked memo revealed that Comcast plans to conduct a significant round of layoffs, starting in January, which will impact employees in its Xfinity internet, mobile and cable businesses.
- Paramount, which owns top TV networks such as MTV and CBS, reportedly plans to lay off 2,000 U.S. employees with additional job cuts overseas by next week.
- In June, Disney laid off hundreds of employees in its film and TV sectors and multiple corporate departments.
- Warner Bros., which owns cable networks such as Discovery and HBO, also laid off roughly 100 employees in its cable TV sector in June.
Recent telecom layoffs reflect a growing trend in the tech industry. According to recent data from Layoffs.fyi, roughly 212 tech companies have reduced their workforces this year, resulting in over 91,700 employees losing their jobs.
Layoffs across the country are expected to continue over the next few months as companies seek to simplify their workforces as they invest in AI. A new survey from Resume.org found that 6 in 10 companies plan to conduct job cuts next year, and high-salary employees and those lacking skills in artificial intelligence will be impacted the most.
“There is a push toward leaner, more tech-ready workforces where cost efficiency and agility outweigh tenure or traditional career pathways,” said Kara Dennison, head of career advising at Resume.org, in the survey. “For professionals, this is a call to start reskilling, especially in AI and emerging technologies.”
Related: DirecTV plans controversial change for customers amid struggles
#Spectrum #harsh #decision #major #customer #losses