Sprint PCS affiliate Horizon PCS said it plans to cut 293 jobs or nearly three-fifths of its work force and close 19 of its 41 retail stores in an attempt to improve its balance sheet, which the company said is being skewed by its relationship with Sprint PCS.
Bill McKell, Horizon PCS president and chief executive officer, said during a press conference this week that the carrier regrets the layoffs, and if the company cannot reach a deal with Sprint PCS, it could be forced to file for bankruptcy protection. McKell added that Horizon currently pays close to 50 percent of its total revenues to Sprint PCS, which is well above the 30 percent the carrier had originally planned to pay when it became an affiliate in 1998.
Horizon’s troubles follow similar problems by fellow Sprint PCS affiliates iPCS Inc., which filed for bankruptcy protection earlier this year, and U.S. Unwired Inc., which filed a lawsuit against Sprint PCS claiming the nationwide operator is attempting to take over control of the affiliate’s operations.
