Sprint Will Cut $350 Million In Costs, Including Up To 2,500 Jobs

Sprint's Anymobile Calling Plan

Sprint (NYSE: S) Nextel will be eliminating up to 2,500 jobs at the company in order to reach its goal of cutting $350 million in annual costs. Release.

Sprint said today the labor cost reductions are part of efforts to make its cost structure more competitive and to remain financially secure. The third-largest wireless carrier continues to lose post-paid customers, albeit at a slower rate than in the past. At the end of Q3, the company had a balance of $5.9 billion in cash and equivalents and said it expects to continue to generate cash in Q4. Still, it will face more expenses going forward. In October, it paid $426 million to acquire a Midwest affiliate. It is also likely that Sprint will help Clearwire financially as it rolls out its fourth-generation network.

Back in January, Sprint announced a massive restructuring plan that eliminated 8,000 jobs by March 31 in order to save $1.2 billion annually.

Sprint said the eliminated positions will occur company-wide at various geographic locations and that the positions will be eliminated by Dec. 31. The one area that it will protect is is customer service. In a release, it said: “The company is taking this action in a careful manner to ensure that there is no impact on the improved customer experience that has been reflected in much higher levels of satisfaction in customer surveys and in independent performance tests. Sprint has pledged to not waver on the company’s commitment to quality service and products.”

The company expects to recognize a charge of about $60 million to $80 million during Q4 for severance and related costs associated with the reduction.

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