Feeds

Sprint axes 4,000 jobs, closes 125 stores

Workers tumble through gaping subscriptions hole

The essential guide to IT transformation

US mobile phone provider Sprint Nextel said today it will slash around 4,000 jobs and close about eight per cent of its stores, in an attempt to claw back costs in the face of a haemorrhaging customer base.

The firm admitted in a statement that it has been hit by an inability to attract new subscribers to its service.

Sprint - which recorded a total subscriber base of 53.8 million at the end of 2007 - said in a statement that 125 stores and some 4,000 retail outlets throughout the US would be closed, in a cost-cutting exercise that could save the struggling firm $700 to $800m by the end of the year.

Sprint said 683,000 post-paid subscribers and 202,000 prepaid subscribers had done a runner in the last quarter (Q4) alone.

According to Reuters, the firm has been squeezed by bigger rivals such as AT&T. It has also been hindered by customer service and network problems, as well as feeling the pinch from the credit crunch crisis.

The company said that it picked up 500,000 new subscribers through its wholesale channels in the last quarter, and recorded growth of 256,000 Boost Unlimited users and net additions of 20,000 subscribers in its affiliate channels.

Shares in Sprint have plummeted more than 25 per cent on Wall Street. The wireless telecom firm is due to deliver its Q4 results on 28 February. ®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
EE plonks 4G in UK Prime Minister's backyard
OK, his constituency. Brace yourself for EXTRA #selfies
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.