According to the Wall Street Journal, Sprint is so adamant about cutting costs that all transactions made by every branch of the company has to be approved by the financial department, and Sprint has supposedly outright frozen outside hiring.
Advertisement
Sprint, the unprofitable and cash- strapped wireless carrier, will aim to cut between $2 billion and $2.5 billion in costs over the next six months and eliminate more jobs. To put it in perspective, $2.5B represents [one-third] of the company’s operating costs. As a result, Sprint does not expect to raise additional capital through public debt or equity markets anytime soon.
This report follows a few equally disturbing news that came out just last week when Sprint announced that it was sitting out on its chance to bid during a 600 MHz incentive auction from the FCC next year.
The exact number of employees that will be included in the Sprint layoffs hasn’t been announced. SoftBank holds more than 83 percent of Sprint.
Sprint had around 31,000 employees in March.
The telco insisted that it has no need to acquire new airwaves, claiming that it “has the spectrum it needs to deploy its network architecture of the future”. Sprint is expected to report earnings for its second fiscal quarter in early November.
“We must change our cost structure so we can fuel our growth and operate more efficiently”, the company said in an e-mailed statement Thursday.
“We have begun an effort to significantly take costs out of the business so the transformation of the company will be sustainable for the long-term”.
Advertisement
It is probably going that a few jobs will probably be impacted nevertheless it was “untimely” to talk about the small print due to the early levels of the method, Tovar stated.
