Sprint Axes 1,400 Jobs in Latest Cost-Cutting Strategy
Sprint Corp. (NYSE:S) is cutting more than 1,400 jobs across the country, according to a recent report from CNET and FierceWireless. The company is closing call centers and underperforming retail stores, as well as cutting jobs related to refurbishing phones.
The company laid off 330 technical consultants, closed 150 service and repair centers, and shuttered its 55 worst performing retail stores. The actions were part of a larger cost-cutting plan that was originally announced in January.
A Sprint spokesperson declined to give an exact number of jobs that are being cut. “We stated in January that we would be going through this process during the first half of 2014,” she said. “A final total figure has not been determined, but the majority of reductions are complete,” she added, per FierceWireless.
Sprint is hoping that cutting costs will enable it to upgrade and overhaul its existing network, replacing its 3G network for better performance and adding in 4G LTE. Earlier this year, Sprint announced that customers would have to “pardon our dust,” as customers may experience inconveniences due to the network’s growing pains.
Sprint defends the inconvenience of having a limited number of technicians available to service phones, saying that the company made the cuts in the interest of efficiency. “We wanted to drive traffic to service and repair centers that were strong, and close ones that didn’t operate as well,” Mark Bonavia, a Sprint representative said, per CNET.
“Those reductions come as the result of greater efficiencies that we’ve achieved through simpler pricing plans and improved customer service, which have resulted in fewer calls to customer service as well as adjusting to changing marketplace dynamics,” Sprint representative Melinda Tiemeyer said in a statement, per FierceWireless.
Sprint says it expects its job cuts to be completed by the end of June, and that the cuts will include both management and non-management positions. Sprint posted its first quarterly net profit since 2007 during the third-quarter of 2013, but the tables turned in the fourth-quarter, with the company posting a loss of $1.04 billion.