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News : Sprint Slashes 2,500 Jobs to Cut Costs
Overland Park, KS, USA, Jan 25, 2016 -- Sprint Corp has axed at least 2,500 jobs across six customer care centers and its Kansas headquarters as part of its plan to cut $2.5 billion in costs, a company spokeswoman said on Monday.
The job cuts, mostly in customer service, also include 574 positions at Sprint's headquarters at Overland Park, Kansas, Sprint spokeswoman Michelle Boyd said.
Sprint has shut down call centers in Virginia, New Mexico, Tennessee and Texas and cut back jobs at its Colorado and Overland Park call centers, Boyd added.
The telecom company, which has kick started a turnaround plan, said last year it is looking at areas such as labor costs, network expenses, information technology and administrative expenses to reduce costs to the tune of $2.5 billion.
Investors have been concerned that the company, which is majority-owned by Japan's SoftBank Group Corp, is burning cash at an alarming rate to acquire users and upgrade its network.
Sprint notified employees last week about the job cuts and severance benefits through email, Boyd said.
As of Jan. 1, Sprint's workforce totaled 33,000 employees. The company has said that it planned to give layoff notices to employees before Jan. 30 as its severance package would be reduced after that date.
Sprint subscribers are increasingly using the Sprint Zone app and going online for their customer care needs and the jobs cuts were made in response to that trend, Boyd said.
Sprint said in November 2014 that it would fire 2,000 employees. In October 2014, the company launched a previous round of layoffs and shed about 1,700 jobs.
Boyd declined to comment on whether the company plans to slash more jobs in coming weeks.
The Kansas City Star first reported news of the job cuts on Monday.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Where Is The Problem?
More Editorial From Sprint (US)
About Sprint (US):
Sprint is an integrated communications provider. With approximately 70,000 employees worldwide and nearly $27 billion in annual revenues, Sprint is widely recognized for developing, engineering and deploying network technologies, including the United States’ nationwide all-digital, fiber-optic network and a Tier 1 Internet backbone.
Published: Tuesday, January 26, 2016