Sprint to Layoff 8,000 Employees
Sprint said Monday hat it plans to lay off 8,000 employees in a move that the company says will save it US$1.2 billion annually.
Mon, January 26, 2009
The company says that it plans to finish the layoffs by the end of March and that just over 10% of all layoffs will occur through a voluntary separation plan that the company started last year. Although Sprint isn't specifying which positions will be slashed, the company says the layoffs will "impact all levels of the company" and that the "impact on geographic locations will vary." News of Sprint's layoffs comes less than one month before the company is due to release its fourth-quarter earnings report on Feb. 19.
(View a slideshow on the most notable layoffs of 2009.)
The past year has not been kind to Sprint, as the carrier has lost an average of more than 1 million wireless customers per quarter. In its third-quarter earnings report, the carrier said that it had lost 1.3 million wireless subscribers and had posted a net loss of $326 million. Since the third quarter of 2007, Sprint has shed a total of 3.5 million customers, and the company's wireless segment has lost $645 million so far in 2008.
In addition to cutting its workforce, Sprint says that it is trying to stabilize its finances through suspending its 401(k) match program for 2009, freezing salaries throughout the year and suspending its tuition reimbursement program.