Sprint Nextel to Cut 8K Jobs

3rd-largest wireless outfit has lost millions of subscribers
By Newser Editors and Wire Services
Posted Jan 26, 2009 8:13 AM CST
Sprint Nextel to Cut 8K Jobs
An illuminated Sprint sign is shown at one of the company's stores in New York.    (AP Photo)

Sprint Nextel is eliminating about 8,000 positions in the first quarter as it seeks to cut annual costs by $1.2 billion. The third-largest US wireless provider said it will complete the layoffs, about 14% of its 56,000 employees, largely by March 31. About 850 of the reductions are voluntary and the company said it expected a first-quarter charge of more than $300 million for severance and other costs.

The company said it is also extending a freeze on salary increases. The company has struggled since acquiring Nextel in 2005 as technical problems, stiff competition for feature-rich phones, and poor consolidation efforts have led many subscribers to switch to competing services. It lost a net of more than 3 million subscribers in the previous four quarters.
(More Sprint Nextel stories.)

Get breaking news in your inbox.
What you need to know, as soon as we know it.
Sign up
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X