Sprint’s $2.5 Billion Cost Reduction Is Likely To Include Jobs

Sprint Cost Reduction

Sprint is expected to cut some of its 31,000-person workforce as part of a $2.5 billion cost reduction.

“It’s likely some jobs will be impacted by this [cost-cutting] process, but it’s premature to talk about details,” said Sprint spokesman David Tovar told Computer World.

Along with its 31,000 workers, Sprint also employs 30,000 contractors.

The $2 billion to $2.5 billion cost restructuring was first announced through an internal memo to employees. The memo was sent by CFO Tarek Robbiati. “We just want to make sure employees know what’s happening,” he said.

Robbiati’s memo was first reported by The Wall Street Journal on Thursday night.

Sprint recently announced that it would not participate in an auction of low-frequency wireless spectrum.

“We have plenty of spectrum, the most of any other U.S. company, and we don’t need to participate in the auction,” Tovar said. “We’re going full speed ahead on our network plan and the decision not to participate in the auction has nothing to do with what you’re hearing about cost reductions.”

In the last 12 months Sprint cut approximately $1.5 billion in expenses.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.