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The nation's third largest wireless provider recently kicked off a series of layoffs that are expected to continue through the month of October. In an SEC filing on the matter, Sprint described the job cuts as part of a workforce reduction plan designed to reduce costs and help the company become more competitive in the wireless industry.
Layoffs will impact both management and non-management positions within the company.
According to Sprint spokesperson Scott Sloat, the layoffs will specifically target employees in IT, network and technology groups that have been working on the company's Network Vision upgrades. The initiative, launched more than three years ago, involved improving their CMDA network, shutting down the iDEN network launching LTE service on the 1900MHz spectrum.
Because the overhaul is mostly complete, Sprint is adjusting its staffing needs accordingly, Sloat said. He didn't reveal how many jobs would be cut, however.
One of the first things new CEO Marcelo Claure promised to do at Sprint was conduct a comprehensive review to look at every dollar that is spent. If there were things that didn't make sense in the budget, he said they would cut them fast. Coming from a low-cost industry, it's a methodology he wanted to try to apply in his new role.
Sprint is expected to register a charge of $160 million during the quarter to cover severance package pay and other related expenses.