Analyst: Sprint will have large job cuts in 2009

Sprint Nextel may have large-scale job cuts in January, according to a research note by analyst Walter Piecyk at Pali Research.

Piecyk said he expects "a significant workforce reduction in January" for the carrier, which has struggled in recent months as subscriber growth has dropped. Piecyk said the move is necessary for Sprint to cut costs, and the expectation of job cuts was made in part based upon conversations with Sprint CFO Bob Brust. 

"We do not believe that price cuts are off the table," Piecyk said. "With customer care in good shape, more flexible covenants in place and a planned layoff in January, [Sprint CEO Dan Hesse] has the financial flexibility and the organization structure to make whatever moves he wants in order to stimulate growth."

Hesse has indicated in the past that jobs cuts could be in store as the company moves into 2009, but has declined to say how many jobs could be cut, pending the company's fourth quarter results.

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