Sprint to cut 8,000 jobs

There's so much negative stuff posted around the internet about Sprint (a lot of it is for good reason) that I thought I would highlight some positive stuff about Sprint that was mentioned in this article.

I really hope Sprint can keep it together and recover. I would hate the see the company go away and see a reduction in competition

 

For reference, here is the press release from Sprint.

Sprint Nextel Announces Actions to Reduce Labor Costs by about $1.2 Billion

OVERLAND PARK, Kan., Jan 26, 2009 (BUSINESS WIRE) -- Sprint Nextel Corp. (NYSE: S) today announced that the company will take actions in the first quarter of 2009 to reduce internal and external labor costs by approximately $1.2 billion on an annualized basis. The actions include the elimination of approximately 8,000 positions within the company, which is expected to be largely completed by March 31. The positions to be eliminated will impact all levels of the company, and the impact on geographic locations will vary.

The reduction total includes approximately 850 positions expected to be eliminated under a voluntary separation plan started late last year. The company expects to recognize a charge in excess of $300 million in the first quarter of 2009 for severance and related costs associated with the reduction.

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," said Sprint CEO Dan Hesse. "We continue to improve the customer experience and these improvements are reflected in much higher levels of satisfaction in customer surveys and in independent performance tests. Our commitment to quality will not change."

Sprint has seen a notable reduction in calls per subscriber to customer care and increased customer satisfaction resulting from customer service improvements. The company is committed to these high standards of customer care and innovation. In line with this commitment, the headcount reductions in these functions will be less than in non-customer facing groups. Furthermore, the company's networks continue to operate with current best-ever metrics and has resulted in Sprint being named by Gizmodo as the winner of its nationwide 3G data test last month. Sprint also offers customers the best value in the industry plus high-performance devices like the Samsung Instinct(TM), the BlackBerry Curve(TM) and the upcoming Palm Pre(TM), that make it easy for customers to enjoy everything their wireless handsets can do.

The labor cost reductions are the latest action in the company's efforts to make its cost structure more competitive in the industry and to remain financially secure in a challenging economic environment. Sprint repaid $2 billion in debt in the second half of 2008, and renegotiated its credit facility terms with the expectation of sufficient liquidity to pay debt coming due during the next two years. At the end of the third quarter 2008, the company had a cash balance of $4.1 billion, and said that it had expected to continue to generate Free Cash Flow in the fourth quarter.

Company cost reductions also include a decision to suspend the 401(k) match for 2009, to extend a 2008 suspension of annual salary increases through 2009, and to suspend its tuition reimbursement program for 2009.

The company will release its fourth quarter 2008 financial results on Thursday, Feb. 19, which is earlier than previously announced. Information on accessing the earnings conference call will be issued a week in advance.

.

 

The President (Obama) mentioned that in a press conference today.

 

Even when the economy climbs out of recession there still will be numerous job cuts to go along with it. Just hope some of these companies are heading in the righ direction.

 

Wow, I hope this will not effect them and start setting them back again.

 

There goes the rest of the customer service reps.

 

is it really that surprising that sprint is letting some folks go? after all, this is a company that has shed millions of customers in the past few quarters...

 

If Sprint wants to stay in business perhaps they should do something drastic. Like cut prices by 25% and well below everyone else. They would be swamped with new business.

In this downward economic spiral companies have to understand that people can not pay high prices any more. The cable companies are starting to get it, lets see if the Cellular carriers do

 

They are already well below just about everyone else, and it hasn't helped them yet.

 

Ask GM how long it takes to recover from a bad reputation. You need to be twice as good, twice as reliable, twice as cheap, and have marketing that's twice as good. Even than, you still may not be able to convince people to try again.