Sprint (NYSE: S) disclosed it is going to book another $105 million charge related to its latest round of job cuts, according to a securities filing. That comes on top of the $160 million charge it had already recorded.
According to a filing the carrier made with the Securities and Exchange Commission, the new $105 million charge for the third quarter is related to "severance and related costs relating to" its new round of job cuts.
Earlier this week Sprint CEO Marcelo Claure announced in conjunction with the carrier's third quarter results that Sprint will embark on a cost-cutting program that it hopes will slash $1.5 billion in expenses, and part of that plan will include cutting around 2,000 more jobs.
The company started cutting jobs on Sept. 30 and the carrier thinks its layoffs will be largely complete by March 31, 2015. The cuts will include management and non-management positions. Sprint says the job cuts are intended to help it cut costs and become more competitive.
Sprint said that "additional material charges may occur in future periods."
As BTIG analyst Walter Piecyk noted in October, some of the charges Sprint is recording are likely related to severance costs Sprint is paying to former CEO Dan Hesse and Steve Elfman, formerly Sprint's president of network operations.
In October Sprint disclosed it had cut 452 jobs from its Overland Park, Kan., headquarters. Those cuts came on top of approximately 5,000 jobs the company slashed between Jan. 1 to Sept. 30 of this year. Sprint currently has fewer than 33,000 workers, down from 38,000 at the end of 2013.
- see this SEC filing
- see this WSJ article (sub. req.)
- see this BTIG blog post (reg. req.)
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