Report: Sprint CEO plans job cuts

Sprint Nextel is preparing to cut thousands of jobs, according to the The Wall Street Journal.

The company's new CEO, Dan Hesse, is supposedly trying to show investors that he is serious about cutting costs, the newspaper's Web site reported late on Monday. A Sprint representative declined to comment on the story.

Exactly how many people could lose their jobs is not yet known. Last year the company cut about 5,000 jobs. At the end of the last quarter Sprint reported it had roughly 60,000 employees.

Sprint is the third-largest cell phone company in the U.S. behind AT&T and Verizon Wireless. Investors have been unhappy with Sprint's performance for sometime, which actually led to the company's previous CEO, Gary Forsee being forced out in October. Hesse took over as CEO in December.

One of the biggest problems Sprint has faced is retaining customers. Quarter after quarter Sprint has seen customers, especially those from the old Nextel network, leave its service. Hesse who was CEO of Embarq, a spin-off from Sprint, said when he took over that he'd work on improving lingering issues associated with the 2005 acquisition of Nextel Communications.

This could be the first big move the CEO is taking to get the company back on track.

The Journal also reported that Sprint might also consolidate its headquarters in Overland Park, Kan., to "streamline decision making." Right now, Sprint uses Nextel's old headquarters in Reston, Va., as home base with about 4,500 employees there. The bulk of the company's employees--about 13,000 --work in Kansas.

But simply getting more executives under one roof won't solve all of Sprint's problems. The company also faces big questions about what it will do about the WiMax mobile broadband network it's building. The new network, which is costing Sprint $5 billion, is expected to launch in its first cities in April. Before Hesse took over as CEO, the company said it was still committed to building the WiMax network. But now new questions have been raised about how committed the company will be.

[nicmart]

Knowing Spring...

... the first employees laid off will be customer service reps.

[nicmart]

oops

Sprint, that is.

[Lee in San Diego]

They would have to hire some first

n/t

[FirstTake]

Head Count isn't the Problem!!

As YAUSC (Yet Another Unhappy Sprint Customer) I can tell you that there problems aren't going to be solved cutting heads... they need to get their act together. Their coverage in many areas is spotty and the choice (or should I say lack of choice) in handsets makes it difficult to stay with with them from generation to generation.

They have clearly taken there eye's off the ball and their business results is showing this... proving once again, capitalism does work!!

[toyz321]

Sprint is a great Service

Lets be honest, no cellular providera customer care is any good. Sprints care sucks. But they do have the best network right up there with Verizon. I am a loyal sprint customer well over 7 years now. They sucked at first, but they are teffific now.

[Lee in San Diego]

I agree, at least for my area

I too have been with them for a long time.

Sprint service is pretty good in the San Diego Area, and most other
metro areas that I have visited. Rural areas not so much unless it is
along a major interstate highway.

From my experience over the last few year is that their customer
service mostly sucks, but then are other services any better.

[dargon19888]

Watch them cut here and offshore the roles.

Sprint will cut heads because that's how you increase your short term gains.

[scott12x]

Sprint stock up a quarter

Common story... Very frustrating for people with those jobs. The new CEO does not yet know the dynamics of the company. But he did promise action, as every interviewee does. Everyone knows the quickest way to save some cash is to fire some people. Does that make mass firings the right thing to do. It sucks to see a person can sell out a group of people in order make themselves worth the investement the company will pay to him. It is merely a quick fix, but may have lasting effects on peoples' families and lives.

[sprintwife]

I am a wife of a sprint employee (formally Nextel). He has been with the company for over 14 years and we have suffered through many job cuts and many company cuts backs as well. I dont think we will survive this one. Dan Hesse is a HUGE liar. Oh the stories I could tell about his so-called saving the company.

[szettervall]

They spend way too much buying their affiliates

Sprint has a history of using affiliates to supply network access any many rural areas. They have been and will continue to buy up these affiliates so they truly own and support their entire network.

Buying up their affiliates can be a good idea as they have the opportunity to provide better support at a lower price. Unfortunately Sprint is paying 2-3 times market value for these affiliates. Furthermore, Sprint then lays off all the employees from the affiliates and all support gets absorbed into their call centers in India.

[ehfla]

Bad Choices

First, they had a troublesome merger with Nextel. Now, they're cutting back on Wi-Max investment.

They still have the fastest network. And the future is in data, not just voice. If they are not careful, and don't invest in Wi-Max, they could end up as an also-ran.

I hope they don't lose sight of the future. They need to be first and best with Wi-Max.

[Stating]

If All Else Fails, Buy A Company

Seems like when CEOs run out of ideas they go off and buy a company. When that fails, they take "early retirement", and a new CEO comes in to clean up the mess. First thing he does is whack away at jobs. The people who get whacked are the people who were stupid enough to stay on board after the buyout. They believed the lie, "Don't worry, we're not going to lay you off. In fact, we will need to hire even more people AFTER the buyout, because we will be expanding so much". I heard that from GTE Sprint back in 1987 after they were sold to United Tel. Which became U.S. Sprint. Which became Sprint. Which became Sprint Nextel. Which will now become???

[sprintwife]

AMEN!!!

[Renegade Knight]

Sprint Churn

I can't say I ever left Sprint. Every time I was open to try out a new plan on a new carrier Sprint priced themselves out of the running.

[chuck_whealton]

Re: Sprint Churn

I did leave them. I was a customer for just over two years prior to going to my current carrier. Their coverage was reasonably good (where I traveled) and their data service was reasonably priced. I was considering adding that.

I was relatively happy until one of my flip phone's hinges snapped on me. Back then it was an old, non-color LG and I really liked that phone. I know these things happen.

I asked them if they would give me a deal on a couple of new phones for my Wife and I and I'd sign on for another two years since I was happy with the signal (not necessary the customer service) and was within two months of my contract renewal.

They were more interested in getting every last cent they could out of me for a new phone. It was absolutely INCREDIBLE.

Fine, I bought it and left them a couple months after my contract expired. I've been with my current carrier for 4+ years now.

Had they just been a bit less short sighted, I might still be one of their customers. For real.

Hopefully they'll change somewhere along the line and put more value on long term customer relationships.

[ISARick]

Cut NASCAR Sponsorship

Why don't they cut their sponsorship of NASCAR instead of ruining families and their lives? I'm sure that amounts to many millions of dollars.

[TBolt]

Sprint Sucks

First, they had the nerve to charge me to call to get some customer service. Then, they don't bother to fill the gaping holes in their network.

What a loser company.