Sprint Nextel to Cut 8,000 Jobs

By Geoff Duncan January 26, 2009

Sprint Nextel to Cut 8,000 Jobs

Struggling telecommunications giant Sprint Nextel has announced it plans to eliminate some 8,000 jobs in an effort to reduce labor costs and shore up its bottom line. The company expects the bulk of the job cuts will be completed by March 31, 2009, and the move will save the company some $1.2 billion on an annualized basis; however, the company will take a hit of over $300 million in the first quarter in order to jettison its employees.

Sprint says it expects the positions will be eliminated at all levels throughout the company, but the impact to specific geographic locations will vary. Although Sprint is keen to tell everyone its customer satisfaction is higher than every, the company notes that customer-facing services will see fewer cuts than other sections of the company.

“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, in a statement. “We continue to improve the customer experience and […] our commitment to quality will not change.”

Sprint cut about 850 positions in late 2008 as part of a “voluntary separation plan.” Sprint also cut 4,00 jobs and closed 125 retail locations at the beginning of 2008.

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