Sprint Announces More Layoffs
A while back Sprint announced that they have been forced to reevaluate their corporate structure and would likely let go of several employees. Sure enough, to cut costs they have released 452 workers from their Overland Park headquarters, as described in a report filed with the Kansas Department of Commerce.
The report only covers only the first batch of layoffs Sprint has planned through the end of this month. It does not include any additional jobs which may be cut outside the campus of the headquarters, but many of these are likely to follow.
America's third-largest cell phone provider needs to cut costs in order to keep up with the unfortunate growth of the top two companies: AT&T and Verizon, respectively. Sprint also confessed that it will have to take a $160 million credit in their second fiscal quarter in order to cover the cost of these layoffs, some of which include hourly managers as well as base employees. Of course, this could cost more in the future, if they need to cut even more jobs.
You may recall that nearly 500 employees had already been laid off by Sprint earlier this year, which now brings the total number of employees affected by this to 929.
Sprint had about 7,500 employees in the Kansas City region before announcing this round of layoffs; which makes up more than 20 percent of the company's total work force of approximately 33,000. And that 33,000 is down from 36,000 in March which is down from 38,000 from the end of last year. Obviously, the company is shrinking; and at this pace it may not be long before they are gone for good.
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