Declining revenues force Sprint to cut more jobs

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

Suggested Articles

On the heels of TalkTalk shareholders approving the deal to sell FibreNation to CityFibre, CityFibre is now targeting 8 million premises in the U.K.

Cisco's Kevin Wollenweber has turned into a COVID-19 sleuth of sorts over the past few weeks as he tracks the virus' impact on networks.

The coronavirus pandemic has led to organizations of all sizes sending their employees home for work, but will they want to return to the office?