Sprint (S) To Slash
Sprint (S) is the latest company to say it will show a number of its employees the door. The firm’s business is not doing very well either.
For the fourth quarter Sprint reported a net gain of 500,000 subscribers through wholesale channels, growth of 256,000 These gains were offset by net losses of 683,000 post-paid subscribers and 202,000 traditional pre-paid users.
Anticipating continued downward pressure on subscriber trends, revenues, and profitability in 2008, Sprint announced plans to streamline the business in coming months. These plans call for job reductions across the company including approximately 4,000 internal positions.
Sprint currently expects these actions to reduce its internal and external labor costs by an annualized rate of $700-$800 million by the end of 2008.
Douglas A. McIntyre