Sprint Nextel's new CEO Dan Hesse is making some cuts following last week's less than stellar fourth quarter results: CFO Paul Saleh, CMO Tim Kelly and president of sales and distribution Mark Angelino will leave the company effective tomorrow. SVP and controller William Arendt will assume Saleh's duties while Hesse and the board find a permanent replacement.
"Permanent leaders will be named in conjunction with a review of overall strategy and an effort to streamline operations," said Chief Executive Dan Hesse, who took over last month. "I have no predetermined timeframe in filling these positions but plan to act as quickly as possible as I consider both internal and external candidates."
While many analysts applauded the shake-up, at least one didn't think Hesse went far enough: "It will take more than firing people to turn around the business," Pali Research's Walter Piecyk wrote in a research note. "We believe there are others in management that should also be targeted in order to complete a remaking of the team including technology, handset development and customer service. Most importantly, however, we believe Sprint needs change at the board level and investors will have the opportunity to effect this change this spring when all board members are up for re-election." Piecyk pointed to former Hallmark CEO and Sprint board member Irv Hockaday as one board member that should get the boot.
For more on the Sprint shake-up:
- read this press release