Sprint Corp., has announced job cuts this month in a move to reduce costs and hinted at future job cuts. The layoff will cost the company $160 million as the company seeks to ‘improve operational efficiencies’ in mobile networks.
The company filed a regulatory filing on Friday and said it would set aside $160 million for the layoffs that will end in October. CEO Marcelo Claure had promised the amount in August and stated that the employees had “tremendous value” and the company had to cut costs. Sprint has been transferring executives and laying off workers in a move to stop the subscriber exodus caused by a poor mobile network.
“On September 30, 2014, Sprint Corporation began implementation of a workforce reduction plan to reduce costs and help become more competitive in the marketplace,” as mentioned in the filing.
The major round of layoff is expected to be completed by October though the final cuts will be over by this Halloween. Claure has promised the company’s growth and cost reduction measure after his appointment in August. Though Sprint has its range of promotions, it is facing competition from other carriers like T-Mobile, Verizon and AT&T.
Sprint has also withdrawn its bid for acquiring T-Mobile mainly due to regulatory refusal and also led to the appointment of the new CEO. T-Mobile has aimed at overtaking Sprint by year end while other leading carriers have brought in their attractive promotions. Sprint is also expected to bring in new promotions to retain its position as the third largest network carrier in the US.
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