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Declining revenues force Sprint to cut more jobs
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For Sprint, the cuts just keep coming. Only a week after it announced it would cut about 100 employees from its wholesale networking division, the struggling integrated wireless/wireline provider is now going to slash 2,000 to 2,500 jobs, or about 5 percent of its employee base, in the hopes of saving $350 million.
This is the second major layoff Sprint has conducted this year. In January, Sprint said it would cut 8,000 people from its workforce. Then, in July Sprint relocated 6,000 of its workforce over to Ericsson when the IXC handed over network management functions to the European vendor's services arm.
The cuts should not be all that surprising. Sprint's wireline subscriber base continued to dwindle in the third-quarter. While the company said it was seeing increased adoption of IP-based services rise as legacy voice and data dropped, it was not enough to curb a $478 million loss in the third-quarter. And while the cable operators have been the mainstay of its wholesale voice business, growth has been relatively stagnant.
For more:
- Wall Street Journal via Dow Jones has this article
Related articles
Sprint Wholesale to trim workforce
Sprint's wireline revenues down once again in Q3
Sprint's wireline revenue declines 11 percent
Sprint hands wireless and wireline network keys to Ericsson
Comments
Posted by Anonymous | November 11, 2009 - 12:09pm
Number 1 to wireless, best push-to-talk in under one second, America's most RELIABLE 3G NETWORK!Best plans, they save you money over their competitors and give you more bang for the buck.
Posted by Anonymous | November 11, 2009 - 12:01pm
I guess they are not paying the ceo's of Verizon and AT&T out the Wazoo either. Last I heard - AT&T cut 12,000 jobs and they didn't lose one dime nor did Verizon who did the very same thing to cut costs. You've got to be kidding me..SPRINT GAVE US WIMAX, SOON 4G, SIMPLY EVERYTHING PLANS, ANYTIME ANY MOBILE TO MOBILE PLAN, SPRINT PREMIER LOYALTY PLAN,PALM PRE, PIXI, HERO, MOMENT, INSTINCTHD, HTC HANDSETS,RECLAIM AND EXCLAIM AND BLACKBERRY TOUR AND SOON BLACKBERRY ARIES AND SAMSUNG ACEII. THERE HANDSET LINEUP WAS CALLED THE MOST COMPELLING OUT OF THE TOP FOUR CARRIERS. EAT THOSE WORDS!!! WHAT DID YOU GET FROM THE TOP TWO? A FLOOD OF NEW PHONES TO KEEP THEMSELVES AT THE TOP PLUS A CHILDISH LAWSUIT. CONFUSING OFFERS ON TV AND IN THE MAIL. YOU HAVE TO BE DUMB TO FOLLOW THEM ON THE TV SET AND DUMBER WHEN YOU READ THE OFFERS IN THE MAIL.
Posted by Anonymous | November 11, 2009 - 11:48am
NEGATIVITY AND MORE NEGATIVITY - NEVER STOPS!!!
Posted by Anonymous | November 11, 2009 - 7:32am
The only thing Dan Hesse has done since coming to Sprint is cut people. The board gave him a large payment to walk through the door and for what? He has not delivered any results but proves that he is just another in a line of top executives that loot the company and leave it in worse shape than they found it.
The shame of it is that Sprint in certain markets was beating Verizon at their own game, then came Gary Forsee and the badly managed merger with Nextel and it has been one long downhill slide from there.
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