When a large company starts talking about consolidation and refocusing in
attempts to gain market share on competitors, that usually means layoffs and
corporate restructuring will be part of its efforts. Last year, Sprint Nextel
laid off 5,000 workers in efforts to save money that could be used for other
Sprint is currently the nation’s third largest mobile phone carrier and is
reported to lag well behind number one AT&T and number two Verizon. Some
blame Sprint’s subscriber woes on poor customer service, but Sprint says the
general economic downturn in the U.S. is partly to blame.
Sprint Nextel Corp. CEO Dan Hesse is expected to announce a new round of
layoffs at Sprint rumored to affect roughly 2,000 employees. The Wall Street
Journal Online reports that Hesse
and other executives are considering moving about 200 of Sprint's top
executives to the Sprint headquarters in Overland Park, Kansas. These
employees currently work from the former Nextel corporate headquarters in
Reports also claim that Sprint may be considering a roll back of its WiMAX
plans to cover fewer subscribers as a way to cut the $5 billion USD cost of
setting the WiMAX network up. Sprint had said it expected to reach 100 million
subscribers with WiMAX service this year, but that number could reportedly be
cut by as much as 30% to save costs.
WiMAX is a next generation wireless data service that promises data speeds
on par with wired broadband connections over large distances, Sprint
calls its WiMAX service Xohm. ASUS recently announced that its second
generation Eee PC would support WiMAX.