Nov 3, 2014 4:33 PM
Sprint cutting 2K more jobs, reducing staff 5 pct
The Associated Press
NEW YORK (AP) Wireless carrier Sprint says it is eliminating 2,000 jobs, or about 5 percent of its staff, as part of an effort to cut $1.5 billion in annual spending.
The company said the cuts will be made over the coming weeks and months, and it is still determining how many jobs will be cut from various divisions. Sprint announced a separate round of job cuts in early October, and did not say how many jobs were eliminated at that time. Sprint said Monday that job cuts would reduce its labor costs by a combined $400 million per year.
Overland Park, Kansas-based Sprint Corp. is the third-largest cellphone carrier in the U.S., but it has lost billions of dollars in recent years as subscribers canceled contracts and is trying to compete better with AT&T and Verizon.
Japan's Softbank bought a majority stake in Sprint in 2013 and the company has eliminated thousands of jobs since then. It had 38,000 employees at the end of last year.
Sprint is also making changes at the top, in August replacing CEO Dan Hesse with Marcelo Claure, the CEO of cellphone distributor and Softbank unit Brightstar.
That came after Sprint ended its effort to buy competitor T-Mobile US.
The company's losses haven't ended. Sprint said Monday that it took a loss of $765 million, or 19 cents per share, in its fiscal second quarter on $8.49 billion in revenue. Zacks Investment Research says analysts expected a loss of 5 cents per share and $8.65 billion in revenue.
Sprint shares slid 3.7 percent to $5.97 in aftermarket trading. They have dropped 42 percent this year, closing Monday at $6.20.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. S stock research report from Zacks.