Sprint Lays Off 4,000
Posted by samc on January 21st, 2008Sprint Nextel announced on Friday that it plans to cut 4,000 jobs and close 125 retail locations in an effort to manage slowing subscriber growth, profit and sales. The Reston, Va.-based company currently operates 1,400 retail locations, thus the closures represent 8.9% of Sprint Nextel’s company-owned stores. The 4,000 jobs is about 6.7 percent of Sprint’s current work force of 60,000.
Sprint Nextel, the third largest wireless carrier in the U.S., has fallen farther behind both AT&T, the number one carrier, and Verizon, the number two carrier.
In the fourth quarter of 2007, Sprint Nextel said it lost 683,000 postpaid subscribers, and finished the year with only 53.8 million subscribers. At the end of their third quarters, AT&T had 65.7 million subscribers and Verizon had 63.7 million subscribers. Both AT&T and Verizon are slated to report fourth-quarter results later this month.
Besides the layoffs and closings, CEO Dan Hesse and his staff are considering consolidating company operations at the operational headquarters in Overland Park, Kan. The company has apparently made no decision on the headquarters location.
Whether Sprint will continue to aggressively expand the company’s Xohm-branded WiMax service, or keep it in-house, is still unknown.
source : dailywireless.org
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