labels: Telecom
Sprint plans to cut thousands of jobs: report news
15 January 2008

Mumbai: Wireless carrier Sprint Nextel, America's No. 3 wireless company, is preparing to cut thousands of jobs and possibly bring its corporate headquarters back to Overland Park, website reports cited unknown sources as saying.

The reports said Sprint is actively considering big job cuts, reconfiguration of its headquarters and plans for its WiMax high-speed wireless internet initiative.

Sprint's new CEO Dan Hesse is expected to discuss plans this week with the company's board, a newspaper report on Monday said.

Sprint announced plans in 2007 to shed about 5,000 of its 59,000-strong workforce as part of moves intended to bring $1 billion in savings and other benefits.

After Sprint combined with Nextel Communications Inc. in 2005, the company established its corporate headquarters in Reston, Va., Nextel's former base. Sprint's Overland Park campus became an operational headquarters.

About 4,500 Sprint workers are in the Reston and Washington, DC, area. The Kansas City area is home to more than 13,000 workers.

Sprint has been losing ground to rivals such as AT&T Inc and Verizon Wireless, owned by Verizon Communications Inc and Vodafone Plc as it has struggled with network and customer service issues.

Sprint lost many of its high-value bill-paying mobile customers and said it was also hurt by the credit squeeze for subprime mortgage borrowers, who often buy prepaid mobile services that Sprint offers.

Sprint has also been criticised for its plan to spend $5 billion on a building a new high-speed wireless network based on WiMax.

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Sprint plans to cut thousands of jobs: report