As Marcelo Claure, new Chief Executive Officer takes over, an unspecified number of jobs are being cut, this in an effort to create a leaner operation at a time of more intense price competition.
Sprint’s spokesperson, Scott Sloat, confirmed in an email that 452 jobs would be cut from the campus alone, but because there are still a lot of details to be worked out that number will probably be revised. The filing indicated that this is just the first batch of layoffs, with more coming by the end of the month or early November.
In addition a the workforce reduction at the campus, additional jobs are likely to be cut at other Sprint locations although according to Sloat, exact numbers and locations are not currently available.
Even though Sprint is the third largest wireless carrier in the United States, this after Verizon Communications and AT&T, the company announced a while back that corporate structure would be renovated, which meant the layoff of some employees in an effort to cut costs.
Sprint also admitted in the October 3 regulatory filing that this latest wave of layoffs will come at a cost of $160 million for severance of hourly managers and base employees, as well as other fiscal second quarter expenses.
The report stated that Sprint foresees additional reduction activity within the following weeks but as far as what positions will be impacted, that will come later in an updated list. Already this year, approximately 500 Sprint jobs were cut, bringing the total of people affected this year to 929, so far.
Prior to this new announcement, Sprint had roughly 7,500 employees in the Kansas City area, which accounts for about 20% of the overall company workforce of 33,000. Since this past March, the 33,000 number is down from 36,000, down from the end of last year’s reported number of 38,000. Visibly, Sprint is getting smaller and at this pace, the company could be at serious risk of dwindling down to nothing.