Sprint may be considering outsourcing jobs

Sprint Nextel, as it looks to cut costs, is said to be considering a possible outsourcing move that could shift positions to other companies in the mobile and network infrastructure space and lead to numerous job cuts, according to a report.

The process, known as "re-badging," involves cutting jobs from Sprint's payroll and then paying a vendor to control certain aspects of the business or certain jobs, especially with network infrastructure and monitoring. However, not all of the cut Sprint employees would be guaranteed a job under such a program.

Sprint CEO Dan Hesse has indicated that jobs cuts could be in store as the company moves into 2009, but has declined to say how many jobs could be cut, pending the company's fourth quarter results.

Sprint, which lost 1.3 million subscribers in the third quarter and is looking to regain its financial footing, will move cautiously in balancing the need to cut costs and maintaining the reliability of its networks, said Leigh Horner, a Sprint spokeswoman.

Sprint has also embarked on a voluntary separation package for some of its employees. "People need to make a decision about their career," Horner said. "Any additional things beyond that would be based on the state of our business and our planning for 2009."

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