Sprint Nextel is currently struggling to maintain its subscriber base and
profitability. Many see the waning popularity of the Sprint Nextel service as a
side effect of poor customer service among other things.
DailyTech reported last week that Sprint
was considering layoffs for some of its employees and a consolidation of
executives into its Sprint headquarters in Kansas. The rumor last week was
that Sprint was considering a layoff of around 2,000 employees in addition to
the executive consolidation.
The Wall Street Journal reports that Sprint
released its plans and intends to cut 4,000 jobs and close 8% of its stores
across the country. This move will save Sprint, who is currently the number
three cellular provider in the U.S., up to $800 million USD a year.
In addition to 4,000 employees losing their jobs, three of Sprint’s top
executives were ousted as well. Chief Financial Officer Paul Saleh, Chief
Marketing Officer Tim Kelly and president of sales and distribution Mark
Angelino are stepping down.
The Wall Street Journal also reports that Senior Vice President and
Controller William Arendt will step in as interim CFO. Sprint Chief Executive
Dan Hesse said, “Permanent leaders will be named in conjunction with a review
of overall strategy and an effort to streamline operations. I have no predetermined
timeframe in filling these positions but plan to act as quickly as possible as
I consider both internal and external candidates."
Rumors circulated last week that Sprint might be considering a cut back of
its newly announced WiMAX
service dubbed XOHM to help cut costs. Sprint did not comment on if that
would still happen.