October 3, 2014 / 8:55 PM / 5 years ago

UPDATE 1-Fresh round of layoffs to cost Sprint $160 mln in fiscal Q2

(Adds background, context and details on job cuts)

By Marina Lopes

WASHINGTON, Oct 3 (Reuters) - Sprint Corp, the third largest U.S. wireless carrier has launched a new round of layoffs, the company said on Friday in a regulatory filing, the latest in a string of job cuts plaguing the Kansas-based carrier.

Sprint has been reshuffling executives and laying off workers as it struggles to reverse a subscriber exodus brought about by a messy network overhaul that has caused gaps in coverage.

In March, the company cut 330 jobs and closed 55 stores around the country, as part of an ongoing plan to shrink its workforce in 2014.

The new round of layoffs, expected to end by October, will cost the company $160 million in the second fiscal quarter for severance and related costs and will include cuts to management and non-management positions.

Sprint warned in the filing that additional charges associated with future job cuts may be coming, but provided no further details.

In August, the company appointed Bolivian entrepreneur Marcelo Claure as its new chief executive after dropping a long-sought bid for rival T-Mobile US due to regulatory resistance.

Claure has pledged to turn around the struggling company by slashing prices and cutting costs.

The company, which is 80 percent owned by Japan’s SoftBank Corp, has since launched some of the industry’s most aggressive promotions, but is facing intense competition from its rivals.

No.4 carrier T-Mobile has vowed to overtake Sprint as the third-largest carrier by the end of the year and Verizon and AT&T have launched fierce promotions of their own. (Reporting by Marina Lopes, editing by Chris Reese and Gunna Dickson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below