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Sprint says "You're Fired" to 4,000 employees

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.

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RE: haha
By JohnDoe007 on 1/25/2008 10:40:38 AM , Rating: 3
Right On Ice456789! I too work at Sprint and I must say that customer service is completely out the window. To often are given misleading information or flat out lies to pass on to our customers. Lies such as ‘there is cell site going up in your area to improve coverage,” “circuits ordered for a new site in your area, which means service will improve” the ever famous quote for newbees “its your phone, take it to the service center.” The thousands of customers that are out there will know exactly that what I am saying is the truth, heck even the employees who here know this to be true as well. Its no secret Sprint has suffered tremendously since their acquisition of the Nextel brand; the service was a complete joke and was only good for the “Walkie Talkie” feature via their IDEN network or low network traffic via cell service. I personally don’t use Sprint or Nextel except for the free phones they give us, I like T-Mobile because their customer service is fantastic and their network is far more reliable. I always lose signal in certain areas but its always in the same areas, never have I been on the cell and dropped a call as you most certainly will with Sprint but especially more with Nextel. The fixes are simple for Sprint/Nextel and removing useless executives and CEOs is a GREAT start, the Customer Service issue will require them to reanalyze their Service Level Agreements and to reassess how their employees are paid in regards to the “slamming” of a customer and or giving credit to customers where it is merited, and not penalize its employees for doing the right thing. It’s the small things that count to a customer and if they want to attract and keep existing customers then they will have to adapt to the consumers concerns, otherwise they will continue to show no loyalty to the Brand. Sincerely, A LOYAL BUT HIGHLY CONCERNED EMPLOYEE.

RE: haha
By ice456789 on 1/25/2008 4:14:47 PM , Rating: 3
When I decided to leave Sprint I broke all the rules. In other words, I did what was right, what was ethical, and what was in the best interests of Sprint AND the customers. I threw out all the scripting, I put zero pressure on my guys to sell, and I removed ANY pressure on giving credits. I decided to leave about 2 weeks before I actually gave notice, so for about a month any customers who were lucky enough to get my team on the phone got something they couldn't get anywhere else at Sprint... AMAZING CUSTOMER SERVICE. Our average customer satisfaction score went up about 40%. It's so simple, if they want to fix their customer service problem instead of paying IBM to consult them and institute tons of guidelines, just let the reps do their jobs. Sure, you might not sell as much but at the same time you are not paying millions to IBM to fix your image.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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