Sprint starts to lay off workers as new cost-cutting plan begins

While its corporate parent is talking about borrowing billions of dollars to purchase T-Mobile, Sprint has started a cost-cutting plan by laying off some of its employees. Japan's SoftBank owns 78% of Sprint and is supposedly in 'direct' talks with Deutsche Telekom to buy the 67% stake in T-Mobile owned by the German telecommunications company.

According to regulatory filings, Sprint's managers are still trying to decide just how many employees will receive pink slips. The layoffs will continue through June and in the filing, Sprint said that it will take a charge of $165 million in the fourth quarter to cover severance payments. More charges could take place in future quarters.

Sprint currently has 39,000 workers, and based on the amount of the severance charge, and the possibility of more layoffs taking place until the summer, that figure could be sharply reduced by the time this year's third quarter begins in July.

source: AP