Marcelo Claure’s full memo explaining Sprint’s new management reorganization

ClaureMWCA
Marcelo Claure speaking at the MWC Americas show

Sprint CEO Marcelo Claure is making a range of organizational changes to Sprint’s management, actions that include reducing the number of his direct reports, redesigning the company’s offices, promoting some executives and letting others go.

“The new structure will enable us to improve the customer experience, increase partner engagement, and bring new ideas to market faster than ever before,” Claure wrote in a company memo obtained by FierceWireless. “We’re taking action now to streamline the leadership team so we’re leaner and stronger.”

The memo, available at the end of this article, covers a range of notable actions at Sprint, including:

  • Dow Draper, president of Sprint Prepaid and the architect behind Sprint’s Virgin Mobile relaunch, has been promoted to the newly created role of chief commercial officer.
  • Kevin Crull, president of Sprint’s Omnichannel Sales, has been promoted as the company’s new chief strategy officer.
  • Günther Ottendorfer, Jeff Nelson and Jim Hyde are all leaving Sprint, as noted by The Kansas City Star. Nelson reported to Roger Solé, who will continue in his role as Sprint’s chief marketing officer for postpaid.
  • Claure’s direct reports will be reduced from 16 to nine. Claure’s direct reports include CTO John Saw, President of Sprint Business Jan Geldmacher, COO Nestor Cano, Draper and Crull (Geldmacher, Cano and Crull previously reported to Claure).

Interestingly, Claure is also implementing “new, more modern workspaces where high-performing teams can achieve their goals. These new workspaces are designed to make it easier for teams to collaborate. Collaboration fuels innovation, and I believe that teams working side-by-side can accomplish anything,” Claure wrote in his memo. “To get things rolling, I’m moving to a new workspace in Building 6550 on the Overland Park campus, along with some senior leaders and members of their teams. I want to try out this new workspace, and once we’re sure of the benefits we’ll redesign the workspaces across our campus in Overland Park and our offices throughout the U.S.”

“As we start this new chapter, we’re building an organization that is flatter, faster and closer than ever to our customers,” Claure concluded. “At the same time, we’re creating an environment where partners can collaborate more easily and are empowered to make the decisions that will enable Sprint’s success.”

Claure’s actions likely stem from the recent collapse of Sprint’s merger negotiations with T-Mobile. According to the Wall Street Journal, Sprint Chairman Masayoshi Son ended talks with T-Mobile because he didn’t want to lose control over Sprint, which he believes could play a role in connecting robots and millions of other devices. Just days after the merger talks ended, Son announced SoftBank would raise its stake in Sprint and increase the carrier’s capex from a low of $2 billion last year to an eventual high of $6 billion per year.

“Even if it is tough for the next three or four years, on a five- or 10-year timescale scale it [Sprint] is a strategically indispensable company,” Son told reporters at SoftBank’s earnings briefing earlier this month, according to Reuters.

“Thanks for the support,” Claure tweeted to Son. “Your @sprint partners will make you proud.”

 

Article updated Nov. 21 to clarify Claure's direct reports.