Tuesday, January 29, 2008
Sprint Nextel Will Cut 4,000 Jobs
Sprint Nextel Corp.'s stock plunged after the wireless carrier said it will cut 4,000 jobs and close 125 retail locations in response to a steep drop in its customer base. Sprint shares plummeted nearly 25 percent, prompting analysts to forecast even more cuts in the coming months as the nation's third largest wireless carrier struggles to compete with AT&T Inc. and Verizon Wireless. The layoff of about 6.7 percent of Sprint's work force and closure of 8 percent of its stores is to be completed in the first half of the year. Sprint said in a news release that the cuts will trim labor costs by $700 million to $800 million a year. I have a friend working for them and I hope he doesn't lose his job.