updated 05:10 pm EST, Mon November 9, 2009
Sprint cuts jobs again to save $350m
Sprint this afternoon warned that it will cut between 2,000 and 2,500 more jobs to improve its bottom line. The cellular provider says the cuts will apply both to internal and contractor jobs and that most of the layoffs should take effect before the end of the year. All the cuts should have a net effect of saving Sprint about $350 million per year in expenses.
In its notice, the carrier is emphatic that the cuts avoid affecting customer service, which it has been carefully trying to rebuild in the past few years.
The cut is the latest attempt by Sprint to stem frequent losses that have left the company in a fragile financial state even as it has softened the amount of customers it has lost in its most recent quarter. While devices like the Palm Pre have kept some Sprint customers onboard, critics have asserted that the iPhone and other flagship smartphones have in many cases led customers to drop Sprint for AT&T and other competitors.