Sprint's restructuring to result in thousands of lost jobs

Sprint's restructuring to result in thousands of lost jobs
Masayoshi Son, the Chairman of Sprint and CEO of its majority owner SoftBank, says that the carrier needs to cut $2 billion from its operating expenses. That means that thousands of Sprint employees will be losing their jobs. According to Son, Sprint is in a situation where it can pick up new subscribers, even while cutting costs and laying off employees. Just yesterday, the company reported its fiscal second quarter earnings and for the first time in two-years, Sprint added net new subscribers to its postpaid phone plans. However, excluding customers who migrated from pre-paid to postpaid, that addition totaled only 38,000 subscribers.

Son is in favor of deep cuts. He says that reducing operating expenses by $2 billion is a minimum target, and the cuts could be even deeper. Other Sprint executives are falling in line with CEO Marcelo Claure telling employees that the job cuts are a necessary part of returning to profitability. While the pink slips could continue to be issued through next year, Claure says that he wants to make sure that no stone is left unturned. And that means that some perks offered by the carrier to employees, such as free water bottles and yogurts, will no longer be given to employees. Executives will be forced to use Uber or regular Taxi rides on business trips.

Claure says that he wants to hold back on the job cuts until the end of January to improve the severance pay for Sprint employees. However, instead of getting two weeks of pay for every year worked at Sprint, employees let go will receive one week of severance pay for every year they toiled for the carrier. The cut only applies to those let go after January 2016. Claure says that the previous package was generous in comparison to other firms, but that Sprint needs to apply a more realistic level when determining severance pay.

Sprint's financial woes could be the reason why it has decided not to take part in the FCC's auction next year of some highly coveted low-frequency spectrum. The 6000MHz airwaves travel farther and penetrate buildings better. Officially, the reason given by Sprint for not participating is that the company has sufficient spectrum to continue to upgrade its network.

The major complaint about Sprint is its network. But Claure says that the use of two-channel carrier aggregation in the 2.5GHz spectrum has improved the quality of the network by improving the speed. The CEO knows that there is a long way to go in this turnaround. "If this is a marathon, we are one-third there," Claure said.

source: Bloomberg via FierceWireless

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13 Comments

1. engineer-1701d unregistered

thats easy just fire all the head executive people boom saved 1.7billion with no 30 million retirement amount it wont help sprint they need mass expansion of the network all fiber all lte-a and above

2. techandbeers

Posts: 110; Member since: Nov 02, 2015

Lol you have no clue what you're talking about.

4. Mxyzptlk unregistered

Sprint network is so terrible that they're bleeding more ink than BlackBerry.

6. Bernoulli

Posts: 4360; Member since: Sep 01, 2012

Seriously? You're gonna troll on a sprint article blackberry? Get a life bro, you've proved me further right about you not having anything better to do than troll blackberry.

12. Mxyzptlk unregistered

Take it easy. It was just a joke, and I only did it because meanest has been doing it recently in a few other articles. They technically are bleeding more ink than Blackberry since they are somewhat more financially capable than Sprint at the moment. Like I said, it doesn't help that Sprint has a (expletive)y network.

13. Bernoulli

Posts: 4360; Member since: Sep 01, 2012

if he's this troll you make him out to be, prove that you are the better person and don't start s**t. Anyway yes sprint sucks a big fat one at that, if only they were gsm I would consider them. I have yet to understand how they manage their network, being that they use cdma and their service sucks.

5. Penny

Posts: 1851; Member since: Feb 04, 2011

Is that supposed to be 600 MHz or 6000? 6000MHz is pretty high frequency, no?

8. andynaija

Posts: 1259; Member since: Sep 08, 2012

I was thinking the same thing...

7. Bernoulli

Posts: 4360; Member since: Sep 01, 2012

I really like sprint, seriously, but I wish they could just be GSM, biggest deal breaker for many of us that like freedom.

9. 1ofdakoolkidz

Posts: 23; Member since: Jul 30, 2012

I see people going back and forth, but really was this any surprise? Sprint has yet to make serious strides in innovating their network.

10. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Maybe they shouldn't do these promos that are not solvent, then no jobs would need to be cut. And if they do have the cuts, it precisely needs to be in the outsourced countries, they often cause a big mess on customer accounts.

11. DonkeySauce

Posts: 194; Member since: Dec 03, 2011

Worked for Sprint for 10 years. I left 2 months ago.. Best decision I ever made. So glad to be off that awful roller coaster

14. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I worked for sprint for 4 years as a lead tech. It was by far the worst job I ever had. Everyone was so shady and all management was always trying to save face while throwing everyone under the bus. I left April of last year for a job at Apple in their corporate location. That was awesome, but after 6 months I was hired to do real IT work for the govt. I was geared up to sue sprint for so many things. The class action lawsuit was already started, I ended up not pursuing anything because of stress of dealing with sprint. I just wanted a clean break.

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