Sprint Fires 2,000 Employees To Cut Losses
Some 2,000 Sprint employees will soon be out of a job. The company is slashing its workforce as well as cutting its 2014 adjusted earnings forecast, reports The Chicago Tribune.
The measures are all part of attempts to reduce costs for the telecommunications company. Sprint expects to save $400 million annually with this latest round of job cuts and the company already reduced its forecast for 2014 adjusted earnings to between $5.8 billion and $5.9 billion from $6.7 billion to $6.9 billion. In all, Sprint is looking to eliminate $1.5 billion in annual expenses.
“My job as CEO is to make sure that all costs reflect the value that we are going to provide to the market. I said on day one to all my employees that we were going to take costs out and there will be layoffs,” Marcelo Claure told Reuters in an interview.
On the plus side, Sprint says no more job cuts are not expected.
Sprint has been struggling after a revamping of its network made a substantial number subscribers leave. According to the telecommunications giant, it lost 272,000 contract wireless subscribers in the third quarter. The carrier, however, is hopeful it can turn things around under the guidance of its new CEO, Claure, who was appointed in August. Junichi Miyakawa was also named technical chief operating officer.
“We’ve decided to make some leadership changes. More changes are coming,” Claure said.
Sprint is 80 percent owned by Japan’s SoftBank Corp. The company said its cost cutting moves have narrowed losses to $192 million from a loss of $398 million in the same quarter a year ago. And revenue rose to $8.5 billion from $7.7 billion in the year-ago quarter. Are you still a loyal Sprint customer or have you moved on?