Sprint announced today that it’ll be laying off 4,000 people and closing 125 of its stores in the hopes of saving $700 million to $800 million in labor costs for 2008. It’ll also close 4,000 of its stalls and kiosks normally found in retail stores (it currently has about 20,000). The stock fell almost 19% in light of the announcement.
So is Sprint in trouble? Maybe, but new CEO Dan Hesse just took office last month and has inherited a troublesome Nextel acquisition, WiMax setbacks, and declining subscriber numbers. This could be seen as a move to shake things up a bit while freeing up some cash in the short term.
Bloodletting Continues As Sprint Cuts 4,000 Jobs [InformationWeek]
“So is Sprint in trouble? Maybe…”
Can I nominate this for understatement of the year?
Fortune has a nice write up which echoes internal sentiment regarding Hesse’s challenge. Specifically the lines about the “years of damage the company endured during the lamentable run of his predecessor” and “the botched 2005 Nextel deal”.
If interested, the article can be found here
http://money.cnn.com/2008/01/18/technology/sprint_troubles.fortune/index.htm?postversion=2008011814
SO!!!!!!!!!!!!!!!!!!!! what happens to us that have sprint as our carrier do we start shopping elsewhere? But us that have an stupied contract with them they will charge for stopping business with them? Almost 200.00 to leave them or even cut off an line you don’t use anymore. HELP anyone to answer this!!!!!!!!!!!!!
I hate Sprint! Greedy jerks are going down and they have done it to themselves. Really sad for their employees though. Good riddance!