Following on rumors that Sprint Nextel’s new CEO, Dan Hesse, was planning massive lay-offs in the name of efficiency and cost-savings, Sprint Nextel has officially announced that they’ll be “streamlin[ing] its business” at the expense of 4,000 employees. Sprint also announced that they’ll be shutting down 125, or 8%, of the No. 3 US carrier’s retail-store locations.
Apparently, firing 4,000 employees (more than twice what Nokia layed-off in their factory shutdown that has Germany up in arms) and closing 125 retail stores will save Sprint Nextel something like $800 million in 2008. We’re not saying that it’s worth cutting all those jobs, but Sprint really has to make some serious changes if they want to soften their recent financial free-fall. And, by free-fall, we mean losing 500,000 subscribers in Q4 2007, and Q3 2007 net income of $64 million, down from $279 million a year earlier.
We’re hoping this move works out for you, Sprint. Maybe a move to a GSM network might be in order? Hey, Telus is rumored to be considering it, there must be a good reason for it.