Get All Access for $5/mo

Looking to Cut Costs, Sprint Slashes 2,500 Jobs The wireless carrier has shuttered call centers in Texas, New Mexico, Virginia, and Tennessee.

By Reuters

This story originally appeared on Reuters

Sprint Corp has axed at least 2,500 jobs across six customer care centers and its Kansas headquarters as part of its plan to cut $2.5 billion in costs, a company spokeswoman said on Monday.

The job cuts, mostly in customer service, also include 574 positions at Sprint's headquarters at Overland Park, Kansas, Sprint spokeswoman Michelle Boyd said.

Sprint, the fourth-largest U.S wireless carrier, has shut down call centers in Virginia, New Mexico, Tennessee and Texas and cut back jobs at its Colorado and Overland Park call centers, Boyd added.

The telecom company, which has kick started a turnaround plan, said last year it is looking at areas such as labor costs, network expenses, information technology and administrative expenses to reduce costs to the tune of $2.5 billion.

Investors have been concerned that the company, which is majority-owned by Japan's SoftBank Group Corp, is burning cash at an alarming rate to acquire users and upgrade its network.

Sprint notified employees last week about the job cuts and severance benefits through email, Boyd said.

As of Jan. 1, Sprint's workforce totaled 33,000 employees. The company has said that it planned to give layoff notices to employees before Jan. 30 as its severance package would be reduced after that date.

Sprint subscribers are increasingly using the Sprint Zone app and going online for their customer care needs and the jobs cuts were made in response to that trend, Boyd said.

Sprint said in November 2014 that it would fire 2,000 employees. In October 2014, the company launched a previous round of layoffs and shed about 1,700 jobs.

Boyd declined to comment on whether the company plans to slash more jobs in coming weeks.

The Kansas City Star first reported news of the job cuts on Monday.

Shares in Sprint, which have fallen about 21 percent this year, were down about 10 percent at $2.59 in afternoon trading.

(Reporting by Malathi Nayak in New York and Abhirup Roy in Bengaluru; Editing by Savio D'Souza, Alistair Bell and Meredith Mazzilli)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

Top Secrets to Starting a 6-Figure Etsy Side Hustle That Earns Passive Income, According to 3 People Who Did It

Etsy remains a popular ecommerce platfrom for sellers — and can be incredibly lucrative for those who know how to use it.

Business News

SoftBank CEO Says AI 10x Smarter Than Humans Could Be Here in a Matter of Years

SoftBank CEO Masayoshi Son spoke to shareholders during the company's general meeting on Friday.

Business News

Amazon Is Thinking About Charging Extra for AI Alexa

"Hey Alexa, how much are you going to cost?"

Science & Technology

The 7-Step ChatGPT Formula for Peak Productivity and Profit

With this powerful solution, you can take your productivity and profitability to new heights with ease.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Olive Garden Is Planning to Increase Prices at a 'More Consistent' Rate Due to Inflation

The fast-casual chain saw a slight decrease in same-store sales during fiscal Q4 2024.