Sprint Nextel to cut 8,000 jobs

Sprint Nextel on Monday announced plans to cut approximately 8,000 jobs through the first quarter, as the economic meltdown cuts into the telecommunications carrier's business.

In addition, Sprint plans to suspend its 401k match in 2009, as well as continue with its salary freeze for a second year. The telecommunications carrier's tuition reimbursement program will also be suspended this year.

The workforce reduction is expected to result in a $300 million charge in the first quarter for severance payouts, but also is anticipated to save the company $1.2 billion in annualized labor costs.

Sprint said the job cuts will also include 850 positions lost through its voluntary buyout plan that began late last year.

While the layoffs are expected to affect employees companywide, the degree of the cuts will vary based on geographic location, with the impact expected to be less severe in areas that deal directly with customers, Sprint stated.

The telecommunications carrier is the latest in a growing list of companies to announce layoffs> That group most recently has included software giant Microsoft with 5,000 cuts, Internet search pioneer Yahoo with roughly 1,500 jobs and social media site Digg, which is cutting a small handful of workers, or 10 percent of its 75-person workforce.

In addition to the layoffs, Sprint also announced it will report its fourth-quarter earnings results on Feb. 19.

[nouser]

Wonder what effect this might have on the NASCAR sponsorship down the road? This could be a bleak racing season.

[pacific484j]

With all the Major problems facing us at this time in America, I dont think auto racing' rates very high on the list' of must do.

[xcal78]

It all depends on your point of view as to if auto racing rates high or not. If your someone employeed by that sector it rates very high. If you sell to a racing venue then it rates very high. You have to stop and thing of the impact as a whole. All the food/drinks not sold now impacts Sysco who also handles most restraunts in the US. Now Sysco lost how many millions in revenue so they have to cut staff because of the racing issue or raise prices which now impacts every restraunt in the US. A small thing can have a huge impact globally. I personally don't watch or like auto racing but I know removing it isn't the answer you'll just create a larger issue in the economy.

[dennisl59]

So what company is conspicuously missing from all this news about tech layoffs?

DELL

I am taking bets that ALL the Managers have had to sign a NDA, with penalty of being fired, not to LEAK a Word about their up coming Layoffs, 401k matching, etc.

OR maybe no one cares what they do and aren't asking their PR department.

Thank You.

[worldnet33]

LOL, I have my fair share of probs with Dell, so it will not surprise me to hear them laying people off next...oh wait..do they have any employees left in the states?

<a href="http://www.worldnet-long-distance.com/van.html">Van from St. Louis</a>

[stigmattaman]

I really couldn't care less about the racing environment, but it is extremely interesting to see how interconnected our economy has become. I doubt many would think that a telecom's sufferings would have a major impact on a racing company, or a food vendor, but it's all tied in there.

[GreginChicagoland]

Just as CNET has been reporting, Sprint keeps churning out bad news. As a Sprint customer, I've noticed minor changes to service rates on my January bill which may force me to move after my contract's done later this year.

For the life of me I can't see how the cuts are going to keep the service where it's at, let alone make it any better. The more they shed the more I think Sprint will be on the block one way or the other to be gobbled up by a Verizon or At&t. Or (yes a stretch) a merger with T-Mobile.

Not wanting to overdramitize the story but, but can you hear the rats in the background?

Just sayin'