Sprint Nextel announced yesterday that it lost 300,000 monthly subscribers in its fourth quarter and that it will cut 5,000 jobs. Sprint contends, however, that 2006 results will still meet analysts' expectations of between $41 billion and $41.5 billion in total revenue. This year will see little to no growth in revenue, according to Sprint's projections, which call for $41 billion to $42 billion for total revenue in 2007. While the carrier added total net additions of 876,000 subscribers from both wholesalers and affiliate companies, the gain was offset by a net decline of 306,000 direct subscribers, many of whom were frustrated with the worsening QoS of Nextel service. The job cuts will be spread across the company's operations and will whittle Sprint's workforce down to just below 60,000. The company said 2007 will see a Sprint "growth story" unfold, but it won't begin until mid-year.
For more on Sprint's Q4 woes:
- read this article from the AP