GO
Loading...

Sprint to Lay Off Several Thousand: WSJ

Reuters
Monday, 14 Jan 2008 | 4:48 PM ET

Wireless carrier Sprint Nextel plans to lay off several thousand employees, the Wall Street Journal reported on Monday.

Sprint
Sprint

Citing people familiar with the matter, the report said that the scale of job cuts wasn't clear, but were expected to be in the range of a few thousand.

Company spokesman James Fisher declined comment on the report.

Sprint , the No. 3 U.S. mobile service, has been losing ground to rivals such as AT&T and Verizon Wireless, owned by Verizon Communications, and Vodafone as it has struggled with network and customer service issues.

  Price   Change %Change
T
---
VOD
---
VZ
---

Sprint's new chief executive, Daniel Hesse, who took over the job in December, is also considering a plan to consolidate Sprint's headquarters in Kansas, the Journal said.

In January 2007, Sprint announced plans to reduce its full-time head count by about 5,000 people. Fisher said that these layoffs had been completed and that the company now has just under 60,000 employees.

In the third quarter, Sprint lost high-value bill-paying mobile customers and said it was also hurt by the credit squeeze for subprime mortgage borrowers, who often buy prepaid mobile services that Sprint offers.

Some analysts say they expect the company to report continued customer losses for the fourth quarter.

Sprint has also been criticized for its plan to spend $5 billion on a building a new high-speed wireless network based on WiMax, an emerging technology.

  Price   Change %Change
S
---
VOD
---
VZ
---

Featured

Contact Mobile

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.