Feeds

Sprint axes (at least) 2,000 (more) jobs

Extra call centers? Who needs 'em?

Secure remote control for conventional and virtual desktops

Sprint Nextell announced Monday that it will eliminate between 2,000 and 2,500 positions by the end of this year.

The third largest US wireless provider - which cut 8,000 workers earlier this year - took a different angle on the layoffs, however. According to their announcement, the more-important metric is that the company "will take actions in the fourth quarter of 2009 to reduce internal and external labor costs by at least $350 million."

Those savings may be welcome news to investors, but they're cold comfort to the thousands of employees whose holiday vacations will now be transformed into job-hunting slogs at a time when US unemployment has topped 10 per cent.

Sprint's announcement also notes that due to "increased customer satisfaction ... the company has been able to discontinue the use of 27 call centers as call volume has decreased in the wake of service improvements." With fewer customer calls, it seems, fewer call center minions are needed to field them.

There's another reason for that drop in customer-service demand, however. In the company's 10-Q form filed with the US Securities and Exchange Commission last Friday, Sprint Nextel notes that their wireless subscribers had dropped from from 39.7 million in the quarter ending March 31, 2008 to 33.6 million at the end of the most recent quarter. Fewer customers require fewer service calls.

But that filing puts a shiny gloss on that shrinkage, as well. "Net post-paid subscriber losses of 991,000 for the second quarter 2009 and 801,000 for the third quarter 2009," they report to the SEC, "reflect sequential improvements of approximately 20% per quarter."

Things may be bad, that is, but they're getting worse more slowly than before.

Add to Sprint's woes the fact that the company is investing heavily in WiMAX just as other wireless providers are lining up behind rival LTE - as one analyst says over on CNNMoney, "Sprint's stock has really become a highly leveraged bet on WiMax." An argument can be made that the latest 2,000 to 2,500 Sprinters may not be the last to be shown the door.

Maybe those unfortunate folks can find some solace in the fact that they have a head start in the job-hunting race. ®

Secure remote control for conventional and virtual desktops

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
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?