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Sprint Nextel to cut 8,000 jobs

Sprint Nextel, beset by rising financial problems and a loss of subscribers, said it would cut 8,000 jobs in the first quarter of 2009 as it looks to save around $1.2 billion annually, and attempts to turn around its business and stop the exodus of subscribers to other operators.

The wireless carrier, plagued by legal and financial trouble, announced that the cuts, which amount to 14 percent of its workforce, would be completed by March 31. The company said about 850 of the cuts are voluntary and that it expected to be charged $300 million for severance and other costs. It was not immediately known where the job cuts would come from, but Sprint has indicated in the past that it plans to close up to as many as 20 call centers in 2009. Sprint said the cuts would affect all levels of the company and that the geographic locations of the cuts would vary.

The company also said that Kathy Walker, Sprint's chief networking officer, would be leaving at the end of the first quarter, according to a report in The Wall Street Journal.

The carrier, the third largest in the United States, also said it would suspend its matching 401(k) program for the year as well as its tuition reimbursement program and would extend its freeze on salary increases.  

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," Sprint CEO Dan Hesse said in a statement. "We continue to improve the customer experience and these improvements are reflected in much higher levels of satisfaction in customer surveys and in independent performance tests. Our commitment to quality will not change."

The cuts had been expected for some time, dating back to when Sprint announced it had lost 1.3 million subscribers in the third quarter. Hesse had previously refused to make any announcement about job cuts until Sprint reported its fourth quarter earnings and subscriber numbers. Sprint is expected to do so in February.

For more:
- see this article
-see this Wall Street Journal article (sub. req.)
- see this post

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“The evil men do lives after them.” (Shakespeare)

Three years ago, Sprint’s generals brewed a Sprint- Nextel marriage in hell. The generals tried alchemy – a rotted witches’ brew. They mixed oil and water, boiling mismatched technologies, cultures, and customers.

Then the generals – board sanctioned privateers – plundered and flew. While board directors snored deeply in their leather chairs, the generals raided their corporation’s treasure chest, enriching themselves with colossal, unearned riches.

Their untamed greed bankrupts trust. Trust is the waterway on which a society conducts its business affairs. What is left when trust is lost?

Without trust, affairs dry up. Innovation, sweat, efficiency, thrift and, above all, trust made our corporations strong and our country great. But now…trust has evaporated, boiled in hell.

And burned flesh rots. Sprint bleeds customers. Value shrivels. Shares shrink. Creditors hold junk. Turned-out souls lie awake in the dark, wondering how they will look their children in the eye in the morning light. Communities turn hollow. Ghosts slither through the lost towns.

The plundering generals and privateers have crossed the Rubicon.

I do not mean my words to strike fire and inflame. And, I do not suggest haphazard coup d’état in the boardrooms.

But, we are not fools. Betrayed shareholders, scalded soldiers of corporations, and blistered citizens, now is the time to rise up. Now is the time to stop the diseased greed that infects the minds of our corporations’ generals. Now is the time to end the greedy calamity incited and conspired at boardroom roundtables. Now is the time to halt the spread of moral corruption that burns our trust. Do you feel it burn? Do you feel it?

If your blood boils, stomach turns, and heart races, take action! Demand equal pay for equal performance of our corporations’ generals. And vote on their removal for incompetence. And throw out their snoring, colluding board directors.

Stand up and join United Shareholders of America.

You do not know what you can do until you try.

sir lancelot - best post ever. et al - please please please for once - get rid of hockaday!!!

Face it, America, stupidity rules. Whether it be on Wall Street, in congress or in the boardrooms this country is devoid of real leadership and brains. Sure, we have people with degrees up the ying-yang from the "best" of schools and we have people with pedigrees that rival the world's best however those same people are among the more ignorant our country has fostered since our founding.

Here is the link to the local news paper where Sprint is HQ'ed. Do you want to have a few laughs?

Seems as if Sprint has no friends even in their own backyard. The FCC should have shut down this joke of a company years ago.

sprintconnection.kansascity

It's very disappointing and demoralizing when most of the employees of this company are working hard, cutting costs, trying to stay positive and excited about their jobs, not getting raises or merit increases, not always getting the best tools to do their jobs with, and have been in the same positions for five-plus years, because there are rarely opportunities for promotion due to layoffs every year or so.

And then you see some directors making 6 figures, even though they are in duplicate positions as other directors, yet they have no direct reports, and they get moved around to newly created director and VP titles when the layoffs come. And the directors with direct reports are still flying all their managers in for sales meetings at expensive hotels, when everything they are discussing could be done either through conference lines or internet meetings. There are still all kinds of unnecessary travel and spending going on within some departments. It's as if some directors just aren't paying any attention to the cost cutting measures.

Yet they won't be the ones who get laid off. It will be the field level employees who don't have the power to be causing the damage to the company's bottom line. Sprint needs new decision makers at the district, director, and VP levels, not less employees.

It's sad to see things like this continue and if Sprint-Nextel decide to file bankruptcy later on this year, I wonder how much bailout money their company will be offered?

I've heard from a friend who has family that works there that talks of merging with Alltel are a possibility, but I'm hoping the company doesn't go belly up all together... I refuse to go back with Verizon...

Please Sprint-Nextel, get your act together and climb the ladder this year!

Sprint canot merge with Alltel because Verizon purchased Alltel and finalized the merger last week.

Sprint is completely upside down and in a total state of disarray. This place is a zoo and everyone is just standing around waiting to get walked out the door or train their new H1B replacement.

If the powers that be that currently run Sprint want to cut costs they should consider cutting their currently excessively high paychecks so that the rest of us Sprint employees can get raises. It has been two years now that Sprint employees will not be getting raises which may not mean a lot to the idiots in Corporate since they have cushy offices and large paychecks but for those of us who are living check to check a raise would greatly help us. Dan Hesses, Bob Johnson, John Bataglia (Sprint bigwigs) keep sending out orders for things to change in the centers yes to cut costs and streamline things and always looking at the bottom line but always seem to forget one of the unwritten rules of business, a happy employee produces and is willing to push for greater service to provide customers but a disgruntled frustrated employee will give the very minimun work they want. Dan, Bob, John if you want things to change take a step back and realize that employees do better with positive feedback from their superiors and you all should step down of your collective high horse and visit the centers and actually speak to your employees (not just the ones picked by center management to meet with when the few and far between visits are made because only the yes men are picked and those of us with an actual opinion of our own are ignored. But what do I know I'm just a call center worker who doesn't have the title or the obscenely lare paychecks that the Sprint bigwigs have. It's just a thought but it's my thought.

These "smart" people who have the leadership jobs think the rest of us are stupid. The ranks are fat and these people are not needed. Metro PCS does the same work as Sprint and Verizon and T-Mobile with a much flatter organization. They cut costs on everything from pens to coffee to network equipment. The networks perform the same or better in some cases. The cost per customer is so much lower than theiers, that you would choke if you knew what it was. Forget that Metro doesn't cover every place the fat cats do. Metro can still deploy a network and operation cheaper with the smae quality in any market. Metro hasn't had a layoff, ever. Management is flat and is very responsible for what they are assigned. There is no freeloading. I've worked for T-Mobile, Verizon and AT&T and can tell you that there is too much excess in all levels. Get rid of fat management and empower the grunts. Cut costs and make people work for what they earn. Base everything on performance.

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