Here Comes $2.5 Billion In Cuts From Sprint

Sprint

Sprint is planning to cut $2.5 billion in 2016 and that restructuring will include layoffs and a wide variety of other cost controls.

“We are leaving no stone unturned and looking at all areas,” company spokesman Dave Tovar said in an interview with Reuters. He refused to say how many employees would be laid off because of the company’s cost-cutting initiatives.

There are currently 31,000 employees and a $2.5 billion cut would be equivalent to about 10% of its current annual operating costs of $26 billion.

The company’s capital expenditures to its sales is more than 20%, which is more expensive than other wireless carriers.
“We are trying to get more in line with the industry average,” Tovar said.

The company is expected to announce job cuts on Tuesday. Sprint will also address how it plans to increase the quality, speed and capacity of its wireless network.

The company is also expected to save money by cutting severance for laid off employees while temporarily eliminating raises.

In Q1 the company posted a $20 million loss as revenue fell 8.7% to $8.03 billion.

Majority owner Softbank Corp says it has no plans to sell its stake in Sprint.